Mortgage Rates Will Be Affected by Fed Funds Rate Increases

The bond market has been a much better indicator of booms and busts. The ten year bonyild, which is a better indicator for mortgage rates, has moved by less than half as much as the magnitude of the fed funds rate increases over a cycle. So let's do something really awesome, an analysis of where mortgage rates will be in one or two years. If we look to 20 23, if the fed is serious about hiking another three times, well we can assume that the average 30 year fixed mortgage rate will increase to five %,.