Source: Realtor —
Homebuyers received yet another shock this week as mortgage interest rates shot up suddenly. Rates blew well past 6% in a blow to buyers struggling with record-high and ever-increasing home prices.
The increases were in anticipation of the U.S. Federal Reserve raising its own short-term interest rates in its quest to tame inflation. The Fed hiked its own rates by 75 basis points (three-quarters of a percentage point) on Wednesday, the highest increase since 1994. While mortgage rates are distinct from the Fed’s short-term interest rates, they typically follow the same trajectory. So when the Fed’s rates jump, so do mortgage rates.
So how much can mortgage rates possibly rise? Mortgage interest rates hit 6.28% on Tuesday afternoon and then dipped to 6.22% on Wednesday, according to Mortgage News Daily. A week ago, rates hovered around the mid-5% range. (The outlet’s rates often vary from Freddie Mac’s weekly averages, which are released on Thursdays.)
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