economy
Inflation just increased again. Here's what that could mean for mortgage interest rates.
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TL;DR
- The inflation rate rose to 4.2% in May, the highest in over three years.
- This increase impacts borrowing costs, particularly mortgage interest rates.
- Strong employment data alongside rising inflation could prompt the Federal Reserve to consider rate hikes.
- Lenders may preemptively increase mortgage rates in anticipation of Fed actions.
- Borrowers are advised to consider locking in current rates, reviewing credit, shopping for lenders, or waiting for market changes.