How do mortgage rates fluctuate over time?

Mortgage rates fluctuate over time based on a variety of economic and financial factors. Some of the major factors that impact mortgage rates include inflation, economic growth, monetary policy, and global events. For example, if inflation is high and the economy is growing rapidly, mortgage rates may rise in response to increased demand for credit. Conversely, if inflation is low and the economy is weak, mortgage rates may fall as lenders try to encourage more borrowing and stimulate economic activity. The Federal Reserve's monetary policy decisions can also have a significant impact on mortgage rates, as changes to the federal funds rate can influence borrowing costs for consumers and businesses. Finally, global events such as political instability or major economic crises can also cause mortgage rates to fluctuate.