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Inflation hit 6.8% in November, its loftiest level since the long-ago era of Reaganomics and America’s war on inflation. If prices continue to soar, mortgage rates will head higher, too. But there’s a silver lining to this cloud for borrowers as well.

Today’s combination of low mortgage rates and high inflation is exceedingly rare. So one of those conditions is likely to end soon — and if prices remain elevated, economists say, mortgage rates will rise.

“Inflation tends to push up mortgage rates, so I anticipate that we’ll head into the new year with higher rates than we ended 2021 with,” says Ralph McLaughlin, chief economist at