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(NerdWallet) – Mortgage interest rates are likely to keep on rising in October. Projecting the trend for mortgage rates this month isn’t particularly tricky, but it doesn’t look like there’ll be any treats, either.

While we don’t face the specter of another Federal Reserve meeting until November, the central bankers’ 75-basis-point rate increase in late September, coupled with their latest round of predictions for interest rates, should be more than enough to spook mortgage lenders. What’s less clear is whether lenders will front-load the anticipated increases by rapidly ramping up rates in October or if we’ll see a more gradual ascent.

Federal Reserve actions make mortgage rates jump

The Federal Reserve may not yet have scared inflation into submission, but it has undoubtedly gotten a reaction from the housing market. Mortgage interest rates have increased ahead of each Fed meeting in 2022, trending upward even before the first increase to the federal funds rate was announced in March.

The run-up to the September meeting saw a significant jump, with 30-year fixed-rate mortgages surpassing and then staying above 6%. Arguably, this was mortgage lenders getting out in front of the Fed. An aggressive 75-basis-point increase was expected, and some had even considered a 100-basis-point hike a real possibility.

Booking.com

 

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