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In this brief commentary, Yemeni Mason outlines the dramatic increase in mortgage rates over the past year, noting that typical rates have jumped from the low‑2%‑3% range to the mid‑5%‑6% range, with some cases nearly tripling. He argues that the concurrent surge in home prices—many markets seeing prices double or even triple—cannot be sustained. Mason attributes the rate hikes to the Federal Reserve’s ongoing fight against inflation and predicts that rates will stay elevated for the foreseeable future. However, he observes early signs that the housing market is beginning to level off rather than decline sharply, suggesting a healthier stabilization after a period of extreme growth.
