The Federal Reserve raised short-term interest rates again, but this doesn't mean that mortgage rates will rise as well. The Federal Reserve doesn't set up mortgage rates. If inflation keeps slowing down, then mortgage rates will move lower. According to Freddie Mac, the average rate on a 30-year fixed mortgage dropped to 6.39% from 6.43% the previous week.
With mortgage rates just one percentage point higher than a year ago, the gap between current and last year's affordability is narrowing. Home prices are modestly lower, while American family income is about 6% higher than a year ago. After putting 20% down, current buyers need to spend about 25% of their income on their mortgage payments compared to 24% a year ago.