Atlanta Fed President Projects Rate Hike in 2022: What It Could Mean for Your Mortgage Refinancing?


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The Federal Reserve could raise interest rates as early as 2022. Homeowners can now refinance before interest rates rise. (iStock)

Despite most experts predicting that the Federal Reserve will raise interest rates as early as 2023, a recovering job market and rising inflation lead the president of a Federal Reserve bank to believe it should do so sooner, leading to a rise in the mortgage loan. – and refinancing interest. .

Raphael Bostic, president of the Federal Reserve Bank of Atlanta, said he predicts the next rate hike “until the end of 2022” and based his opinion on “upside surprises in recent data.” He also said rising prices won’t go away anytime soon, adding that it could now take about six to nine months for prices to fall again as inflation continues to rise.

Currently, the Federal Reserve keeps the Federal Funds interest rate at a targeted 0% to 0.25%, keeping interest rates that follow, such as rates on home loans, student loans, credit cards and personal loans, low. This has led to a boost in lending, especially in the refinancing of mortgages. The 30-year fixed-rate mortgage continues to hover around 3%, according to Freddie Mac.

To see what interest you could get on a mortgage refinancing before the refinancing rate rises, visit Credible and compare multiple mortgage lenders at once.


Current targets set inflation growth at 7% for 2021, well above the Fed’s target of 2%. The federal funds rate, which indirectly affects mortgage rates, is currently set at 0% in an effort to boost activity during the recession. As a result, mortgage rates — as well as rates for student loans, personal loans, credit cards, and more — have remained at record lows.

At the end of 2020, 12 of the Fed’s 18 voting members said interest rates should remain at their current levels until at least 2024. Currently, the majority of Fed members predict now at least two rate hikes in 2023. At a recent virtual event Hosted recently by The Atlantic, Treasury Secretary and former Federal Reserve Chair Janet Yellen said interest rates may need to rise to slow inflation and prevent the economy from overheating.

As interest rates prepare to rise, millions of homeowners can still take advantage of the current low interest rates. View Credible to find personalized mortgage rates and lower your mortgage payment without impacting your credit score.


The personal finances of about 13 million homeowners would still benefit from refinancing their mortgage at a better interest rate or loan term, such as switching from a 30-year fixed mortgage to a 15-year fixed mortgage, according to the latest data of Black Knight. Homeowners who refinance their mortgage loan can make significant savings as interest rates fluctuate near record lows. AN studying towards the end of last year showed that the average homeowner saved about $304 a month by refinancing their mortgage.

While there are still not enough voting members forecasting a rate hike in 2022 to materialize it, more Fed members are changing their predictions to start the first hike earlier as economic data improves, making an earlier rate hike more of a possibility.

Visit credible to view your refinancing options before interest rates rise to compare rates and get prequalified in minutes.

Do you have a financial question, but you don’t know who to ask it? Email The Credible Money Expert at: [email protected] and your question can be answered by Credible in our Money Expert column.

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