Mortgage rates are holding steady today, with 30-year fixed rates hovering just above 5%. Rates have remained near their current levels for several weeks now, suggesting that they may have finally peaked.

Rates increased dramatically this year in response to inflation and the Federal Reserve’s attempts to tame it. Next week, the Fed will meet to discuss raising the federal funds rate. So far this year, the Fed has hiked this rate twice, starting with a 0.25% increase in March and a 0.5% increase in May.

While mortgage rates aren’t directly tied to the federal funds rate, they often inch up as a result of Fed rate hikes. So it’s possible that mortgage rates could rise further.

“If inflation were to spiral out of control and spur the Fed to take even more aggressive action, rates could rise to a level that could send demand and affordability into a steeper downward spiral than the decrease we’re seeing currently,” says Robert Heck, vice president of mortgage at Morty. “That said, current market indicators are not projecting interest rate levels in the next 10 years to reach a level that would send mortgage benchmarks above 7%. This, and other market indicators, suggests that we’ll settle in at these rate levels and adjust to these rates as a new norm.”

Today’s mortgage rates
Today’s refinance rates
Mortgage calculator

Use our free mortgage calculator to see how today’s mortgage rates will affect your monthly and long-term payments.

By plugging in different term lengths and interest rates, you’ll see how your monthly payment could change.

Are mortgage rates going up?

Mortgage rates started ticking up from historic lows in the second half of 2021, and may continue to increase throughout 2022.

In the last 12 months, the Consumer Price Index rose by 8.3%. The Federal Reserve has been working to get inflation under control, and plans to increase the federal funds target rate five more times this year, following increases in March and May.

Though not directly tied to the federal funds rate, mortgage rates are often pushed up as a result of Fed rate hikes. As the central bank continues to tighten monetary policy to lower inflation, it’s likely that mortgage rates will remain elevated.

What do high rates mean for the housing market?

When mortgage rates go up, home shoppers’ buying power decreases, as more of their anticipated housing budget has to go toward paying interest. If rates …read more

Source:: Business Insider

      

Today’s mortgage and refinance rates: June 9, 2022 | Rates have held steady for several weeks now

Leave a Reply

Your email address will not be published. Required fields are marked *