Homebuyers Face Rising Mortgage Rates Despite Hot Housing Market

Mortgage rates for homebuyers have ticked up recently, with the average 15-year fixed and 30-year fixed rates increasing, along with the 5/1 adjustable-rate mortgage. The Federal Reserve's efforts to curb inflation by raising its federal funds rate have influenced mortgage rates. Experts predict that rates will likely remain in the 6% to 7% range. Homebuyers are advised to focus on improving their credit scores, saving for a down payment, and comparing rates and fees from multiple lenders. The average 30-year fixed rate is 7.61%, the average 15-year fixed rate is 6.83%, and the average 5/1 adjustable-rate mortgage rate is 6.54%. Mortgage rates are expected to decrease slightly in 2023 if inflation continues to decline and the Fed holds or cuts rates, but they are unlikely to return to previous record lows.