The Federal reserve is going to continue to increase rates. This is not news. It seems more to be the norm. However, if they are lower than the market is anticipating then mortgage rates may decrease regardless of the increased rate.

Markets expect the U.S. Federal Reserve to raise rates again on March 22, 2023. The increase is expected to be 0.25 percentage points, with a slim chance of a 0.5 percentage point hike. I expect the Fed to raise rates .5% on March 22. That outcome is largely (not a slim chance) expected by markets, but pricing right now may be for only a .25% rate increase.

The real question is whether the Fed will continue to raise rates for the two subsequent meetings in May and June. The March meeting, and specifically the economic projections that the Fed will release with their interest rate decision, should provide some clues to what the rates may look like in late spring to early summer when the housing market traditionally is peaking.

Feel free to call me at 503-7013-4699 or email me at if you have any questions and we can run some numbers.