With the 10 year Treasury rate at 2.8%, based on historical relationships, a 30 year conventional mortgage should have a rate of 4.5%, however, it’s now over 5%. I suspect that this is because investors expect the Fed to keep raising rates. Given that the Fed might raise the Fed funds rate to 3.25% and have suggested maybe as high as 4.0%, this suggests that mortgage rates should peak at 5.7%, possibly 6%.  Buckle up!