The federal fund rate doesn’t directly affect long-term rates, including mortgages, but the two tend to go hand in hand.Īfter the Fed’s rate hike in June of 2022, mortgage rates increased to 5.78% for a 30-year fixed-rate mortgage and 4.81% for 15 years.
The Federal Open Market Committee sets the short-term interest rates, known as the federal fund rate, that banks use when people want to borrow money from them, especially mortgages. My crystal ball sometimes fails me, so we have to look at actual statistics, facts, and industry expert opinions to make a more grounded mortgage rate prediction for 2023.
It is always so difficult to predict economic indicators which can affect mortgage rates for the next year.
0 kommentar(er)
