usatoday.com/story/money/2021/12/17/mortgage-rates-interest-rates-inflation/8892172002
The Fed expects to raise rates three times next year to make borrowing more expensive for individuals and businesses. It also expects more hikes in the following two years, lifting rates from near zero to 2.1% by the end of 2024.“When the Fed increases its interest rates, banks do, too.”

Nadia Evangelou, senior economist, and director of forecasting for the National Association of Realtors (NAR) expects mortgage rates to rise to 3.7% by the end of next year. "When that happens, mortgage rates go up for borrowers,” she says.

Home prices havesurged to new heights during the pandemic as remote work fueled record demand for bigger houses. Buyers took advantage of historically low mortgage rates to finance their purchases. During the depths of the COVID-induced recession last year, the Fed cut short-term interest rates almost to zero.

The Fed's intervention pushed mortgages rates to record lows. The average rate on the benchmark 30-year fixed-rate loan will slip to 2.65% in December 2020. MBA forecasts that mortgage rates will rise to 4% by the end of 2022 and may be more volatile as the Fed backs away.
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