Mortgage Rates Keep Climbing as Fed Battles Inflation, Hitting 7.1% Average for 30-Year Loans

Mortgage rates continued climbing over the past week, with average rates for 15-year, 30-year, and 5/1 adjustable mortgages all increasing.

The Federal Reserve has hiked interest rates repeatedly since March 2022 to combat high inflation, which has driven mortgage rates up alongside.

While inflation has eased somewhat, it remains above the Fed's target, meaning further rate hikes are possible if inflation spikes again.

Experts advise focusing on credit score, down payment, and comparing rates to maximize chances of the lowest rate.

Average 30-year fixed mortgage rates are expected to end 2022 around 7.1%, though could dip by end of year if inflation consistently moderates.