March 28, 2024

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Mortgage rates have been elevated in anticipation of this week’s Federal Reserve meeting.
Another extra large hike to the federal funds rate is likely coming on Wednesday, with most investors expecting an increase of 75 basis points — though there’s also a chance the Fed could enact a 100-basis-point increase, which is equal to a full percentage point.
With more tightening from the Fed, mortgage rates could experience yet another increase this week, especially if the central bank opts for a 100-point hike. 
Looking ahead, mortgage rates aren’t likely to start coming down until inflation does. While prices have slowed somewhat, they’re still stubbornly high, and it may take a few more increases from the Fed before we start to see a sustained drop. This means mortgage borrowers probably won’t start to see significantly lower rates until the second half of 2023.
Use our free mortgage calculator to see how today’s interest rates will affect your monthly payments:
By clicking on “More details,” you’ll also see how much you’ll pay over the entire length of your mortgage, including how much goes toward the principal vs. interest.
Mortgage rates started ticking up from historic lows in the second half of 2021 and have increased significantly so far in 2022. More recently, rates have been relatively volatile.
In the last 12 months, the Consumer Price Index rose by 8.3%. The Federal Reserve has been working to get inflation under control, and plans to increase the federal funds target rate three more times this year, following increases in March, May, June, and July.
Though not directly tied to the federal funds rate, mortgage rates are sometimes pushed up as a result of Fed rate hikes and investor expectations of how those hikes will impact the economy.
Inflation remains elevated, but has started to slow, which is a good sign for mortgage rates and the broader economy. 
When mortgage rates go up, home shoppers’ buying power decreases, as more of their anticipated housing budget has to go toward paying interest. If rates get high enough, buyers can get priced out of the market completely, which cools demand and puts downward pressure on home price growth.
However, that doesn’t mean home prices will fall — in fact, they’re expected to rise even more this year, just at a slower pace than what we’ve seen in the past couple of years.
It can be hard to know if a lender is offering you a good rate, which is why it’s so important to get preapproved with multiple mortgage lenders and compare each offer. Apply for preapproval with at least two or three lenders.
Your rate isn’t the only thing that matters. Be sure to compare both what your monthly costs would be as well as your upfront costs, including any lender fees.
Even though mortgage rates are heavily influenced by economic factors that are out of your control, there are some things you can do to help ensure you get a good rate:

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