• Skip to primary navigation
  • Skip to main content
Morty Home School

Morty Home School

Everything you need to know about homebuying

  • Morty Home
  • How It Works
  • About Us
  • Todays Rates
  • FAQs
  • Get Started

What the rate hike means for mortgages

June 16, 2022 Fed, inflation, rates, reader question

Some mortgage rates crept above 6% this week, as the market reacted to higher-than-expected inflation data and sought to price in anticipated rate hikes coming out of this week’s Federal Reserve meeting. With that, we’re teed up nicely for this week’s reader question… 

-Robert Heck, Vice President of Mortgage @ Morty

Not sure what to do? We can help! Drop us a line on Twitter @himorty or email MortyReport@morty.com.

Reader Question of the Week:

How quickly will we see a change in mortgage rates after a Federal Reserve meeting? 
– Mel C. in Broomfield, CO

There’s a common misconception that you’ll see a dramatic spike or fall in mortgage rates in direct response to Fed announcements. In reality, the mortgage market is adjusting daily to macroeconomic conditions and predicted policy changes by the Fed. This means that any expectations of rate hikes typically get priced into the market well in advance of the announcements themselves. So we’ll see some rate movement – but likely nothing crazy.  

After the Fed’s May meeting, we actually saw rates stabilize and drop off slightly, though they had been gradually ticking upward in the weeks before it. As for what will happen to rates following this week, you can expect some volatility as the market settles in. Buyers should look for signs of decreased demand and increased inventory in the housing market as inflation continues to surge and fuel general economic uncertainty.


Get the full Morty Experience

Get pre-approved in a flash, gain access to your downloadable quote, and take advantage of our unique Closing Programs when you create an account. It only takes a few minutes!

Create yours


The Morty Report Fed, inflation, rates, reader question

You may also like

What the ‘new normal’ means for buyers Will cooling inflation heat up the housing market? Does homebuying have ‘seasons?’ The Fed’s latest rate hike: here’s what homebuyers need to know

Your homebuying journey starts here.

Get Started

Morty Home School

  • How it works
  • About us
  • Licenses
  • Closing date promise
  • Join our team
  • © 2023 Morty, Inc
  • Terms of Service
  • Privacy Policy
  • Learn More
  • Get home financing advice when and how you want it.
  • Resources
Morty is a licensed mortgage broker. NMLS ID # 1429243. NMLS Consumer Access. All loans originated by Morty are funded by third party lenders. Morty, Inc. is authorized to do business as “Morty” in certain states. Morty is an equal housing lender.

  • Homebuying 101
  • Money Matters
  • the morty report
  • rates