Here is an easy read article that describes the difference between Federal Reserve Interest rate (fed rate) and traditional mortgage rates.
When we hear things like “the fed rate is going up half a point”, we tend to equate that to mortgage rates adjusting in tandem. In reality, a myriad of factors, not just the fed rate, influence and determine mortgage rates.
Mortgage rates right now, in our recent experience, are well into the 6% +/- range, and do not move hand in hand with fed rate hikes.
So whereas the fed rate increases are of concern, there are many other factors that drive mortgage rates and you can understand them better in this quick read that will help you understand how mortgage rates are actually determined: How the Federal Reserve Affects Mortgage Rates.
