- Mortgage interest rates are rising alongside inflation.
- Current rates have pushed above 5%.
- Homebuyers will likely see rates continue to rise in 2022.
As inflation pushes mortgage interest rates higher, some consumers are wondering just how high they’ll go and we have the latest price predictions!
But first, let’s talk about current mortgage interest rates. Here’s a quick breakdown from Bankrate.
- 30-year mortgage rate: 5.42%
- 15-year mortgage rate: 4.77%
- 5/1 ARM mortgage rate: 3.84%
- 30-year jumbo mortgage rate: 5.38%
Most of these are actually down from the same time last week. Even so, that doesn’t mean they’ll continue to drop. Let’s take a look at where experts think mortgage interest rates are heading with the most recent price predictions below!
Mortgage Interest Rates Price Predictions
- Federal Reserve Chairman Jerome Powell said interest rates will continue to increase to combat inflation. That means consumers will likely see mortgage interest rates stay at current levels or increase more.
- Rocket Mortgage also believes that mortgage interest rates will continue to rise in 2022. It advises homeowners to refinance sooner rather than later to avoid higher rates.
- “The pressure to contain inflation will grow and the Fed will have to raise its fed funds rate eight to 10 times with quarter-point hikes this year. Additionally, the Fed will undo the quantitative easing steadily, which will put upward pressure on long-term mortgage rates.” — Lawrence Yun, chief economist and senior vice president of research at the National Association of Realtors, told Forbes.
- “With inflation still accelerating and the Federal Reserve on the cusp of starting to run off their bond portfolio, all signs point to higher rates.” — Greg McBride, CFA for Bankrate.
Investors looking for more market news today will want to stick around!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.