Mortgage Rates Climb Higher on Aug. 22, 2023: What Does That Mean for You?
Over the past week, a few key mortgage rates increased. The average interest rates for 15-year fixed and 30-year fixed mortgages both grew. We also saw an increase in the average rate of 5/1 adjustable-rate mortgages.
As inflation surged in 2022, so too did mortgage rates. To rein in price growth, the Federal Reserve began bumping up its federal funds rate, a short-term interest rate that determines what banks charge each other to borrow money. By making it more expensive to borrow, the central bank’s goal is to reduce prices by curtailing consumer spending.
During its July 26 meeting, the Fed initiated a hike of 25 basis points (or 0.25%) to its federal funds rate, marking its 11th increase in the current rate-hiking cycle. The most recent increase could have an impact on mortgage rates, but experts say the markets may have already factored it into rates.
Current mortgage rates for August 2023
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