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Is it inflation? caused by the federal reserve?
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In the US, the interest rate on a standard 30 year mortgage is tied to the interest rate yield on the 10 year government bond. Why 10 year? Because on average, the US household keeps the house for 7 years before a life event makes them sell (e.g., move to another city, move to bigger house, etc). So banks use the 10 year bond rate to determine what the mortgage rate should be.
The 10 year government bond rate is set by the market every day since bonds are sold through auction, then bought and sold through markets.
The federal reserve can influence the 10 year bond rate either by changing the interest rates on the fed rate, but this is more of an indirect method. Also, the fed can influence the interest rates on the mortgage by buying the 10 year bonds, which tends to bring the rate down.
Inflation is always the bad guy. To calm it down, the Fed has to raise the policy rate, and the market rate will follow. If the Fed ignores it, it will be a cause of financial crisis, because it will create a bubble that will burst thereafter.