Does federal rate rising mean mortgage interest rates will rise along with it?

In short answer, no. Just because federal interest rates are rising does not mean that mortgage interest rates will stay high or continue to rise.

According to the chief economist for the Mortgage Bankers Association, Mike Fratantoni, mortgage rates have already dropped about half a percentage point in recent weeks. As many Americans have heard, rates in June were around 6 percent and now they are heading closer to 5.5 percent.  

Fratantoni states that based on his research, mortgage rates have already peaked and could stay between 5 and 5.5 percent through the remainder of 2022. If this is accurate, then potential buyers who were scared off by the rate spike might find their way back to the housing market.

Have you been interested in buying or selling but the mortgage rates have pushed you away? Contact your real estate experts at Burk Brokerage in Lakeview New Orleans with any questions or concerns that you may have about buying or selling a home in the New Orleans Metro area.