What the Fed’s rate increase means for mortgages.
The Fed's decision has implications for credit cards, auto loans, and student loans
Rates on 30-year fixed mortgages do not move in lockstep with the Fed's benchmark rate
"We're seeing rates move up pretty quickly, and a lot of that has to do with forward-looking expectations about where things are going,"
"Perhaps inflation will be stickier than the market anticipated." said Len Kiefer, Freddie Mac's deputy chief economist.
Mortgage rates have risen by two percentage points since the beginning of 2022, though they have remained relatively stable in recent months.
However, with consumer prices continuing to rise, mortgage rates are on the rise once more — by some estimates, reaching as high as 6%.
The closely watched Freddie Mac rate averages won't be released until Thursday, but they started to rise last week
According to Freddie Mac's primary mortgage survey, 30-year fixed-rate mortgage rates were 5.23 percent as of June 9.
More than 5.09 percent a week before and 2.96 percent the same week in 2021
Other mortgages are more closely linked to the Fed's move.
Home equity lines of credit and adjustable-rate mortgages, both of which have variable interest rates, typically rise within two billing cycles after the federal funds rate changes.