30-Year Mortgage Rates Soar to Record Highs

High inflation is expected to push the Federal Reserve to raise interest rates more quickly than expected a few days ago.

Mortgage News Daily reports that 30-year loan rates rose to 6.18 percent from 5.44 percent last week.

The Fed began a two-day policy meeting Tuesday and will announce interest rate decisions Wednesday at 2 p.m. The odds of a 75 basis point hike have risen to 90% from 4% a week ago.

This rapid shift in expectations comes after Friday’s record high CPI and rising inflation expectations in a University of Michigan survey. The Fed released its May consumer survey on Monday. Inflation expectations rose. Tuesday’s Producer Price Index showed monthly inflation accelerating.

Fed doesn’t control mortgage rates. It targets banks’ overnight lending rates and pays interest on overnight reserves. Longer-term interest rates reflect short-term rate trends. Mortgage rates, in turn, tend to reflect the direction of long-term rates, especially the yield on 10-year Treasury bonds. The 10-year yield is now 3.45%, up from 2.97% last week.

Mortgage rates are at a 10-year high.

The preceding is a summary of an article that originally appeared on BREITBART.