Mortgage Rates Unlikely to Get Back Down to Pandemic Lows Your rate might be different. When the Fed decides they need to tighten up the money supply, they raise interest rates on consumer borrowing, including mortgage rates. In this case, it was a forecast based on market rates as of May 31, 2022. In the history of the Primary Mortgage Market Survey, which stretches back to April 1971, mortgage rates have only increased faster in 1980 and 1981. The average rate for a 30-year mortgage is expected to rise to 3.3%. Thats according to Freddie Macs Primary Mortgage Market Survey, the most widely used benchmark for current mortgage interest rates. Three Ways The Federal Government Can Help Boost Housing Supply, Top Investor Edition: Recession Proofing Your Real Estate Portfolio, Invest-Texas: A Case For Canadian Investors In The Lone Star State, Why Investors Should Take Advantage Of The More Homes, Built Faster Act. As a result, we may see mortgage rates creeping back up and remaining above 6.5% throughout the spring., Odeta Kushi, deputy chief economist at First American, Mortgage rates may bounce around until the market has more clarity about the outlook for inflation. While there is reason to believe that inflation will subside in months to come, strong employment gains and a resilient consumer have markets spooked that inflation will persist, thereby requiring the Federal Reserve to remain restrictive for longer. Up, up and away. While CIBC doesnt see any further rate hikes in 2023, in examining the economic factors, it also doesnt expect the Bank of Canada to begin easing rates any sooner than 2024. That makes for a tough decision considering that lock-in periods can last 90 days. An Update to the Economic Outlook: 2020 to 2030 We can't tell you with absolute certainty where the federal government will take interest rates will go in the next few months, let alone the next number of years. Sign up for our daily newsletter to get the latest news, updates and offers delivered directly to your inbox.. Another factor that is sure to be an issue in the coming decades will be the cost of the effects of climate change, which will result in increased costs of necessities like food and energy.
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