The economy has undergone a structural transformation that ended the low-cost era. 'The regime change in inflation and interest rates is the outcome'

Fortune · 18

Economists say higher borrowing costs are driven by broader economic shifts rather than the Federal Reserve’s most recent rate hike, with steady growth, stubborn inflation, big tech funding AI data centers, and large government deficits pushing rates up. The average 30-year mortgage rate reached 6.95% last week, the highest in more than 1.5 years. Mortgage and debt conditions shift from the prior low-rate, low-inflation era toward a higher-rate environment that aligns with persistent inflation and competition for bonds.