The Federal Reserve announced it would accelerate its bond tapering and that three rate hikes would come in 2022.

This week “mortgage rates inched up as a result of economic improvement and a shift in monetary policy guidance,” says Sam Khater, Freddie Mac’s chief economist. “While house price growth is slowing, prices remain high due to solid housing demand and low supply. We expect rates to continue to increase into 2022 which may leave some potential home buyers with less room in their budgets on the sideline.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Dec. 16:

*30-year fixed-rate mortgages: averaged 3.12%, with an average 0.6 point, rising from last week’s 3.10% average. A year ago, they averaged 2.67%.

*15-year fixed-rate mortgages: averaged 2.34%, with an average 0.7 point, dropping from last week’s 2.38% average. Last year at this time, they averaged 2.21%.

Source: Freddie Mac and “Instant Reaction: Mortgage Rates, December 16, 2021,” National Association of REALTORS®