Mortgage Rates Near 1-Year Highs

Interest rates are based on bonds. Because the bonds underlying the average mortgage are fixed rate, inflation is the enemy. Imagine you’re an investor fronting the money for a fixed-rate mortgage. You know your schedule of payments from day one. Let’s say the payment is $5 or enough to buy a dozen eggs.  Now let’s say inflation raises the price of those eggs to $7. You’re still only receiving $5 because you inv…