Mortgage Raised Poised for More Jumps as Federal Reserve Meets

Abstract

In the weeks following the May 3-4 meeting, the average rate on 30-year fixed-rate loans has jumped from 5.10% to 5.30% and back down to 5.09% again. Back in January, the average 30-year mortgage rate was barely over 3%. Now, two rate hikes later, it's nearly 200 basis points higher. We're yet again on the cusp of another Fed meeting and, by the looks of it, another rate hike as well. Will mortgage rates follow? The Fed's benchmark rate isn't directly tied to mortgage rates, but it does have an impact. In the weeks following the rate hike in May, mortgage rates again rose. While mortgage rates have moderated since then, there was still an initial higher rate period following last month's meeting. Make your moves now There's no crystal ball here, but if things continue as they have following past Fed meetings, we're likely to see mortgage rates increase after the June 15-16 meetings.