The highest inflation rate since the 1950’s was 13.3% in 1980. The current rate is the highest in 40 years. Note that until 2021, inflation remained below mtg rates. The sharp increases in both rates occurred because of the Federal Government’s response to COVID, pumping trillions of unearned dollars into an economy with not enough goods to absorb the available cash. Consumers can absorb higher mortgage rates if they have available income.
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