On March 22, the average interest rate on the 30-year fixed mortgage reached 4.72%, moving 26 basis points higher since last Friday. This is compared to March 2021 when rates were about 3.45%. As a result of the recent spike, economists are now lowering their home sales forecasts for this year. Most estimates at the end of last year had the average 30-year mortgage rate hitting 4.5% by the end of 2022. However, the war in Ukraine, rising oil prices and inflation have all contributed to the drastic increase in rates and the changing forecasts.