Today’s mortgage and refinance rates: September 23, 2022 | Rates up by over 3 percentage points this year

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The average 30-year fixed mortgage rate hit 6.29% this week. This is more than a quarter of a percentage point higher than last week, and more than a three percentage point increase from the beginning of 2022, when it was at 3.22%, according to Freddie Mac

The Federal Reserve met this week to determine its next move in its fight against inflation. It opted to raise the federal funds rate by 75 basis points, or 0.75 percentage points. This is the third consecutive rate increase of this size, and more large hikes are likely coming at its next two meetings in November and December.

“We anticipate that ongoing increases in the target range for the federal funds rate will be appropriate,” Fed Chair Jerome Powell said in a press conference on Wednesday. “The pace of those increases will continue to depend on the incoming data and the evolving outlook for the economy.”

The Fed is wary of easing up on rate hikes prematurely, and it has made it clear it’s committed to raising rates until inflation shows sustained signs of slowing to its target annual rate of 2%.

As long as inflation remains elevated and the Fed continues raising rates, mortgage rates are likely to stay at their current levels, and could rise further. But as inflation starts to come down, mortgage rates should, too. The question is whether the Fed will be able to meaningfully slow price growth without pushing the economy into a recession.

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Source:: Businessinsider

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