The latest Market Talks covering Financial Services. Exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

1004 ET – US interest rates will have to remain high for longer because of low mortgage rates softening the impact of monetary policy, Apollo’s Torsten Slok says in a note. “Fed hikes are not having the desired effect because households have locked in low levels of mortgage rates during the pandemic,” he says, adding that 22% of mortgages have now interest lower than 3%, up from 1% in 2019. “As a result, the Fed will have to keep interest rates higher for longer to slow down the economy and get inflation back to 2%.” However, markets are pricing no more rate increases by the Fed and cuts starting in 1H of 2024. ([email protected]; @ptrevisani)