Will mortgage interest rates climb if the Federal Reserve hikes rates? Sometimes, but not always. Check out rates on 2-16-2022 and rate hike information between 2016 and 2018
A Fed Rate Hike – What Does It Mean
Often when we hear that the Federal Reserve is considering a short-term interest rate hike we presume that it automatically means mortgage rates are going to climb. That is not always the case and it is not always an equal movement.
Between 12/14/2016 and 12/19/2018, the Federal Reserve raised short-term interest rates 8 times, with each hike increasing rates 0.25% for an overall increase of 2%. Over the same 2-year period, the yield on the 10 year Treasury note rose from 2.54% to 2.77%.** Mortgage rates typically follow the movement in the 10 year Treasury as opposed to the Fed rate.
While there has been movement it is not a guarantee that if the Fed raised short term rates .50% that Mortgage rates will follow.
This Week’s Mortgage Rates
The 30 year fixed rate mortgage comes in at 4.125%
The 20 year fixed rate mortgage rate comes in at 4.0%
The 15 year fixed rate mortgage comes in at 3.375%
The 10 year fixed rate mortgage rate comes in at 3.097%
1 year adjustable rate mortgage (ARM) is 2.99%
2 year ARM 3.5%
3 year ARM 3.25%
5 year ARM 3.5%
Information sourced from North Shore Bank, Wisconsin. Always check with your lender for most current rates and terms.