02/21/2026
During the pandemic, 30-year fixed rates fell below 3% as the Federal Reserve cut short-term rates and purchased large amounts of bonds to support the economy. But when inflation surged in 2022 — driven by stimulus spending, supply chain disruptions, and strong consumer demand — the Fed rapidly raised short-term interest rates to cool prices. While the Fed doesn’t directly set mortgage rates, its policies strongly influence the bond market, especially 10-year Treasury yields, which mortgage rates tend to follow. As those yields climbed, mortgage rates rose above 7%, peaking at 7.79% in October 2023. Today, with inflation easing and markets stabilizing, rates have settled back to around 6% — a meaningful improvement from the recent highs.