Mortgage Interest Rates are soaring on the back of the news that the Federal Reserve is gearing for a series of interest rate hikes to combat rising inflation.

The Mortgage Bankers Association (MBA)  said yesterday that the 30-year fixed-rate mortgage rose to 3.52% in the week ended January 7. 

The 19 basis points (bps) increase was the largest weekly jump since March 2020. The 15-year fixed mortgage rate is 3.020%

2022 Housing Market

Supply shortages are still a significant problem. Home prices continue to skyrocket. The rising mortgage interest rates will exacerbate the affordable housing crisis.

The sharp jump in the 30-year fixed-rate mortgage can increase monthly mortgage payments by nearly 2.40%

Inflation & Mortgage Interest Rates. 

Inflation soared to its fastest pace in nearly 40 years last month, a 7% jump from a year earlier.  

The last time inflation was at that mark, the 30-year fixed-rate mortgage was nearly 18%.