Mortgage rates rise fast but fall slow. This October 2022 breakdown explains what the Federal Reserve's rate changes mean for your next move in the housing market and how inflation plays into the forecast.
What does the future look like for mortgage rates? Now? We know rates have gone up recently, but what do the next 3, 612 months look like? So the Federal Reserve is obviously increasing their rate to slow down or curb inflation. But that's not an overnight fix either. So think about it. When the Federal Reserve increases their rate, we're not going to not buy dinner tonight or not go out this weekend, but maybe when we get that credit card statement next month or our gas or utilities bill and it's crazy high, well then we might reconsider our spending habits. So it does take take a month or two or three before it really catches hold and starts to change the way consumers spend. But when it does, that will start to slow inflation. So I think it's a few month, you know, game plan here. But as inflation starts to wane a little bit, get less and less, mortgage rates will slowly go down. Think of it like this. Mortgage rates take the elevator up and go up quickly because the market reacts out of emotion and they take the stairs down and they slowly stair step down one by one. So it's not going to be as quick of a drop as it was on the way up. But slowly but surely the next three, six, nine months or so, you should start to see mortgage rates starting to ease. During the average inflation, mortgage rates dropped by 1.8%. I think that's something we'll see in the next year or so.
