Mortgage rates are going up primarily due to persistent inflation, economic uncertainty, and the actions of central banks like the Federal Reserve and the European Central Bank (ECB) to control inflation by adjusting interest rates. Inflation remains higher than desired, causing central banks to raise their policy rates, which in turn increases mortgage rates. Additionally, trade tensions and market instability contribute to fluctuations in mortgage rates. The housing market dynamics, including limited housing supply and rising home prices, further pressure mortgage rates upward. Although recent rate cuts have temporarily lowered mortgage rates, these rates remain relatively high and volatile due to ongoing economic concerns and inflation expectations.
