Interest rates are rising — but the Fed’s actions could make it easier to get a mortgage

Interest rates are rising — but the Fed’s actions could make it easier to get a mortgage

Mortgage rates are already rising in response to the Federal Reserve’s hawkish stance on inflation, but home buyers may not need to worry about having trouble qualifying for a home loan in the months to come.

The 30-year fixed-rate mortgage averaged 3.12% for the week ending Dec. 16, up two basis points from the previous week, Freddie Mac FMCC, -1.06% reported Thursday. The current average rate for the 30-year loan is now nearly half a percentage point higher than it was a year ago.

The 15-year fixed-rate mortgage, meanwhile, dipped four basis points to an average of 2.34%. The 5-year Treasury-indexed adjustable-rate mortgage averaged 2.45%, unchanged from the previous week.

The Fed is set to pump less liquidity into the mortgage market

This week’s increase to the benchmark mortgage rate is likely just the beginning. The Federal Reserve is scaling back its stimulus activities at a quicker pace…

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