Mortgage rates increased 31 bps this past week to 4.36%. The Fed increased rates 25 bps on March 15th, 2022, with many more increases to follow and a reduction in their securities purchases (i.e., Taper Program). For a $100,000 loan, the monthly payment increased by $18 to $498 which is equal to $0.60 a day. Mortgage rates of 5.00% to 5.50% by year-end are very possible given the Fed’s announcement.
Rates rocket up and feather down and for now and into the foreseeable future, they will continue to increase. It appears longer-term rates have increased in anticipation of the Fed’s 25 bps increase on March 16th, 2022, with 6 more rate increases to follow by year-end 2022. Viewed from a broader time frame, 4.36% mortgage rates are relatively low.