After a brief pause and slip last week, mortgage rates rose this week as they continue their trek higher. Freddie Mac reports that the 30-year fixed-rate mortgage rose nine basis points to 3.85% with 0.8 in points and fees. The 15-year rose to 3.09% from 3.01% also with 0.8 in points and fees. "Over the long-term, we expect rates to continue to rise as inflation broadens and shortages increasingly impact many segments of the economy. However, uncertainty about the war in Ukraine is driving rate volatility that likely will continue in the short-term."

Consumer inflation continued to run hot in February as the data shows numbers not seen in 40 years. The February Consumer Price Index (CPI) rose 7.9% year over year, inline with estimates and above the 7.5% recorded in January. Monthly, the CPI rose 0.8%, inline and up from 0.6% in January. Higher food and energy costs fueled the rise. Core CPI, which strips out food and energy, jumped 6.4% annually, above the 5.9% expected and up from 6% in January. This Core CPI reading has flown under the radar of the media ... 6.4% is ridiculously high and nearly three times what the Fed is looking for in 2%.

The MBA reports that mortgage credit availability increased in February. The MCAI rose to 126 as credit availability rose to its highest level since May 2021. The index was benchmarked to 100 in March 2012. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. "Credit availability increased to its highest level since May 2021, driven by growth in jumbo loan programs, as well as those that include allowances for ARMs and expanded credit score and LTV requirements," said MBA spokesperson Joel Kan.