Mortgage rates in the USA surged to a six-month high this week, indicating that recent improvements in home sales may be only temporary. Freddie Mac, the mortgage financing institution, reported on Thursday that the average rate for a 30-year fixed mortgage increased from 6.85% last week to 6.91%, the highest level since early July. The average at the same time last year was 6.62%. Although the Federal Reserve has lowered rates three times since starting its monetary policy easing cycle in September, mortgage rates continue to rise. Against the backdrop of economic recovery, mortgage rates are rising in tandem with USA Treasury yields, as investors worry that policies proposed by President-elect Trump, such as tax cuts, increased tariffs on imported Commodities, and mass deportation of illegal immigrants, may reignite inflation.