Rates have been rising at a reasonably quick pace for most of February. The process began in earnest after labor market data on February 3rd. Markets were forced to reassess their outlook for the short term rates controlled by the Fed and that reassessment causes some spillover to longer-term rates like mortgages.
Generally speaking, higher inflation and stronger economic data mean the Fed is likely to keep short-term rates higher for longer. Today's dose of stronger economic data came in the form of the Retail Sales report which showed sales up 3.0% in January after a decline of 1.1% in December. Analysts expected a shift into positive territory, but only to the tune of +1.8%.
Rates reacted by moving moderately but immediately higher. The average conventional 30yr fixed quote is up to 6.75% now although many lenders are still quoting lower rates for reasons discussed earlier this week.
