![]() The Fed has certainly left the door open to carrying out a 12th rate hike, but the jury is still out. While inflation, currently at a rate of 3.2%, hasn’t yet reached the Fed’s annual target rate of 2%, it’s down significantly from its peak at 9.1% last June. By making it more expensive to borrow, the central bank hopes to reduce prices by weakening consumer spending and dampening demand. ![]() Since March 2022, the Fed has raised its federal funds rate 11 times in an effort to rein in inflation. Here’s what you need to know about mortgage rates, how they work and how to find the best deal. Regardless of whether another rate hike is on the horizon it’s always important to compare offers from different lenders to find the lowest mortgage rates and most amenable loan terms. 15, according to CNET sister site Bankrate. ![]() “It is difficult to pinpoint exactly where mortgage rates will end up as the year closes out, but we believe 30-year fixed rates will stabilize around 6% by the end of 2023,” said Ran Eliasaf, founder and managing partner at Northwind Group. They’re at 7.51% as of Aug. So where do mortgage rates go from here? Experts predict they’ll continue to fluctuate but that there won’t be any dramatic upward or downward movement. ![]() Mortgage rates move up and down on a daily basis in response to a broad range of economic factors, such as inflation, employment data and economic growth. Mortgage rates, which are indirectly influenced by changes to the federal funds rate, have roughly doubled since the start of 2022. Persistently high mortgage rates are a telltale signal to homebuyers that it’s critical to compare multiple loan offers to find the best deal before buying a home.Īt its July meeting, the US Federal Reserve increased the federal funds rate - a short-term interest rate that determines how much banks charge each other to borrow money - by a quarter of a percent (or 25 basis points). ![]()
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