October rates will continue to follow recent mortgage rate spikes, CUNA Chief Economist Mike Schenk said during a recent interview with Fox Business. 

"We expect longer rates to rise, but only modestly," said Schenk. "At the end of the fourth quarter we expect the 10-year to be right around 1.5%, so that would put the 30-year mortgage rate at about a little bit north of three."

According to Freddie Mac data, the average 30-year interest rate currently sits at 2.99% and the 15-year annual percentage rate is currently 2.23%, while rates are rising for loans on single-family homes,

Schenk predicts that rates will increase “slow and steady,” as will home prices. 

""It’ll increase confidence and, I think, increase the demand for housing. On the other side of the equation, more than likely, in the month of October and in the near future beyond October, continue to wrestle with supply-side issues. And so if you put those two things together, higher demand and then soft supply, that would suggest to me that price increases would be more likely than decline,” he said.

Though what seems to a housing bubble situation given the price climb during the pandemic, Schenk explained that it is unlikely to see a "bubble burst" as in 2007.