Mortgage Rates - The Fed's Focus on Inflation

Mortgage rates are not dictated by the federal funds rate. The spread between yields and mortgage rates averages 170 basis points or 1.7%. Mark Zandy, one of the most prominent economists in housing market forecasters expects the average rate for a 30-year fixed rate mortgage to be 5.5% in 2023. I don't expect the rate to continue upward much beyond the low 7s unless inflation takes a turn for the worse.