If Rates Are at 4-Month Lows, Why Does The Fed Say They’re Going Higher?

If Rates Are at 4-Month Lows, Why Does The Fed Say They’re Going Higher?

Mortgage rates officially hit their lowest levels in 4 months after this week's inflation data. Despite the recent progress, Fed officials continue to talk about keeping rates high "for as long as possible." Who's telling the truth? First off, we know that mortgage rates are at 4 month lows because that assertion relies on the past as opposed to the future.  You'd have to go back to September 12th to see anything lower for the average lender.  We also know that inflation has been the driving force behind the tremendous rate volatility seen over the past 12 months. Specifically, the Consumer Price Index (CPI) has been at the scene of the crime for most of the largest rate moves.  Up until November, all but one of those large moves was toward higher rates, but things have shifted si