Inflation Jump Dashes Hopes for Near-Term Mortgage Rate Cuts

• Inflation rose to 3.1% in January, dashing hopes for interest rate cuts and lower mortgage rates soon.

• The inflation increase was driven by rising shelter and food costs.

• Mortgage rates may not fall significantly until the Fed sees clear evidence inflation is declining toward 2%.

• Homebuyers can still lock in rates now before they potentially rise further, apply for adjustable-rate mortgages, or buy mortgage points.

• Taking steps like locking rates, getting adjustable rates, or buying points can help buyers improve chances of a cost-effective loan.