My crystal ball sometimes fails me, so we look at actual statistics, facts, and industry expert opinions to predict 2023 mortgage rates.

The Federal Open Market Committee sets the federal fund rate, which banks use when people want to borrow money, especially mortgages.

Mortgage rates increased to 5.78% for a 30-year fixed-rate mortgage and 4.81% for a 15-year fixed-rate mortgage following the Fed's rate hike in June 2022.

Freddie Mac said the 30-year rate jump was the largest one-week increase in their survey since 1987. Higher rates are due to a shift in inflation and monetary policy expectations.

Further increases are expected in July as well, and according to my crystal ball, they will be significant, at least a.5 increase or as much as.75 if inflation indicators remain unchanged.

Doug Duncan, Fannie Mae SVP and chief economist, said rising mortgage rates have historically led to a housing slowdown.

The consensus is that the current rise in mortgage rates will continue, that mortgage rates will rise in 2023, and that they will rise steadily over the next three years.

According to a housing survey released by the New York Federal Reserve, rates are expected to reach 6.7% by 2023 and 8.2% by 2025.

If this turns out to be the case, it will be the first time since the year 2000 that the average 30-year rate has been higher than 8%.

It's easy to understand why people expect mortgage rates to rise steadily when they've been climbing steeply since April 2022.

Mortgage rates could rise that high. 8% interest rates by 2023 are unlikely, says Kukhan's chief economist Ralph Mclaughlin.

While consumers may be mentally preparing themselves for higher rates in the coming years, industry experts are more cautious.