Will Mortgage Interest Rates Continue to Rise This Year?

Are you worried about another interest rate hike affecting already-high mortgage rates.  If you are, here's some good news: The Federal Reserve did NOT announce another rate hike this week. However, this doesn't mean that we've seen the end of them

The interest rates has a huge factor in determining the monthly payment when someone buys a home and uses a mortgage.  When home buyers purchase a home the monthly payment is very important so the higher the rate the less home a buyer can afford.  The table below shows the impact of different rates on a mortgage of $300K.

 While businesses and consumers alike were hoping to hear Fed Chair Jerome Powell drop hints that suggest the end of rate hikes, no economist is ruling them out 100%. This because the year isn't over till it's over, and the Fed probably won't be sure about possible rate hikes until their next meeting. This is because Fed decisions are dependent on incoming economic data.

 While inflation has cooled during 2023, we're still seeing strong numbers in employment & an increase in the price of oil which drives all costs up.  Additionally, there are some newer risks. They include the current automotive strike, the ongoing writers' strike, the resumption of student loan payments and a possible government shutdown.


Every Friday I am emailed rates by various lenders.  Here are the rates I received today on a 30 year fixed rate:


Wells Fargo              7.125%

Ameris Bank             6.99%


It pays to watch rates and shop around.  Call me if you are planning on Buying or Selling a home in the near future.


What I am hearing from lenders is they expect rates to fall going into next year.  I heard the same thing last year and rates kept going up.  I do not think anyone knows for sure what rates will do - advice I give people is you marry the house and date the mortgage.  If rates go down refinance.  If they continue going up you will be glad with the rate you qualify for.