This past week 3.31.22 Mortgage rates increased 25bp to 4.87%. In the prior 3 weeks, rates have increased by 80bp. The market is reacting to the Fed’s strong statement coming from their 3.16.22 FOMC meeting. For a $100,000 loan, the monthly payment increased by $14 to $529 which is equal to $0.50 a day. Mortgage rates of 5.00% to 5.50% by the end of April are very possible given the Fed’s announcement.
Rates rocket up and feather down. For now and into the foreseeable future, they will continue to increase. The Fed clearly signaled that additional rates increases will be occurring later this year. Their next meeting is on May 4. Viewed from a broader time frame, 4.87% mortgage rates are relatively low.