Mortgage Rates Continue to Rise Amid Debt Ceiling Standoff

Average interest rates for 15-year fixed, 30-year fixed, and 5/1 adjustable-rate mortgages increased over the last seven days. The Federal Reserve's recent 25-basis-point increase to its benchmark short-term interest rate suggests that inflation is cooling and the central bank may soon be able to pause its rate hiking regime. While mortgage rates are likely to decrease slightly in 2023, they are highly unlikely to return to the rock-bottom levels of 2020 and 2021. Homebuyers should focus on improving their credit score and saving for a down payment to increase their odds of qualifying for the lowest rate available.