Mortgage Rates Surge to November Highs Amidst Increased Demand.

US mortgage rates rose to 6.79% last week, the highest level since November, due to uncertainty about the debt ceiling standoff and concerns about inflation. The economy remains strong, with job openings exceeding market expectations, but ongoing economic uncertainty and declining affordability are dampening borrower demand. The lack of homes for sale is also a headwind for the housing market, leading to elevated home prices and households delaying buying a home. However, if mortgage rates remain elevated, sellers may be motivated to cut prices during the summer months.