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What You Should Know About Rising Mortgage Rates

February 28, 2023 1 min read Brenda Bianchi

Mortgage rates are higher than buyers want them to be. After 43+ years through every rate environment, our team can tell you what is happening, what is likely next, and how to plan your Tampa Bay purchase accordingly.

Where rates are now

30-year fixed mortgage rates have been bouncing in the 6–7% range. That is higher than 2020–2021 lows but well below the 1980s peaks. The 50-year historical average is around 7.7%.

What drives rates

  • Federal Reserve actions
  • Inflation data
  • Employment reports
  • Treasury yields
  • Geopolitical events

The forecast

Most forecasters expect rates to settle in the 5.5%–6.5% range over the next 1–2 years. A return to 3% would require severe economic disruption no one wants.

What to do

  • Get fully pre-approved at today’s rate
  • Calculate what payment fits your budget
  • Buy when the home and the payment match your life
  • Refinance later if rates drop materially

The bottom line

Today’s rates are workable for most Tampa Bay buyers. Our team is happy to walk through specific numbers for your situation.

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