Mortgage Rates Climb Back Above 7% on Economic Uncertainty, Expected to Fall in 2023

Mortgage rates surged in 2022 when the Fed raised rates, reaching near 8% in October. Rates fell below 7% in December but have bounced back up.
Strong economic data has made markets uncertain if the Fed will cut rates as expected in 2023. This uncertainty is pushing mortgage rates back above 7%.
Government deficit spending and potential disruption from a government shutdown could also put upward pressure on rates.
Rates are expected to fall below 6% by end of 2023 according to forecasts, though weekly volatility is likely.
Homebuyers should shop around with multiple lenders to get the best rates, as competition can often lead to better deals.