Interest rates have been influenced by the trading levels in the bond market, with recent shifts indicating higher yields. Bond traders opened to weaker levels compared to last Friday, though the exact cause of this shift remains a mystery.

The momentum behind these increasing rates is clear: historically high inflation necessitates equally high rates as a countermeasure. While the assumption has been that these rates would hurt the economy, this hasn’t been as evident yet. Until we observe such economic damage, we can expect the rates to keep soaring.

Interestingly, as market players shed their previous beliefs about a looming rate decrease, this upward movement takes on a consistent, self-propelling quality. There are days when the rates appear to be reacting to a significant trigger, even when no such news is present.

By last week’s end, mortgage rates touched a fresh high of 7.4%, inching even closer to 7.5% today, a peak not witnessed since late 2000. Although some scenarios still offer lower rates through discount points, many are experiencing the sting of these higher rates.

Key Takeaway: Mortgage rates are on a steady rise, with today’s rates nearing those from over two decades ago. Factors like inflation and market sentiments play a pivotal role in this trend.