A dramatic reading on inflation feeds rumors that the Federal Reserve will raise interest rates dramatically on Wednesday by 75 basis points. Our focus in June will be on mortgage and title as we examine the direction the mortgage market is taking, the way that products are changing, and how alternative financing choices are altering the playing field.Due to concerns that increasing inflation may lead the Federal Reserve to adopt a significant rate hike when policymakers meet on Wednesday, mortgage rates spiked above 6 percent on Monday. According to a Labor Department data made public on Friday, inflation reached 8.

• Key FactsIts highest level since the 2008 financial crisis, the average interest rate on the typical 30-year fixed mortgage house loan is just over 6.2 percent, up from about 5.5 percent a week ago.
• According to Goldman Sachs strategists, the median monthly payment on a new 30-year mortgage has increased more than 50% since last year, which has negatively impacted both existing home sales and mortgage applications amid rising interest rates and impending recession worries.
• According to James Stack, president of InvesTech Research and Stack Financial Management, the current housing bubble is the "Achilles Heel" that could "put a torpedo into the side of the U.S. economy," particularly as indicators like homebuilder confidence and traffic from potential buyers continue to decline.
• As purchasers are priced out of the market by rising inflation and high mortgage rates, new statistics released on Wednesday by the National Association of Home Builders revealed that builder confidence has fallen for six consecutive months, reaching its lowest point in two years.
• Meanwhile, the volume of interested buyers fell to its lowest point since June 2020, with new purchasers being particularly hard-hit by "declines in housing affordability," according to NAHB chairman Jerry Konter.
• A record-low housing supply, rising prices, and the rise in interest rates are all having an impact on demand, as evidenced by the fact that home purchase applications are down 15% from last year, according to information released by the Mortgage Bankers Association on Wednesday.