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Current mortgage rates, November 4, 2022 | Rates rise again after Federal Reserve hike

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It’s not the same mortgage rate environment as a year ago.

The average interest rate on a 30-year fixed rate mortgage has doubled over the past year, largely due to high inflation. Rates rose significantly as the Federal Reserve raised its key rate to combat this high inflation.

For homebuyers, these big changes in mortgage rates mean higher monthly payments, even though house prices have started to come down a bit. The most important thing for consumers is to make sure the home you are considering buying is one you can afford. Factor changes in prices and mortgage rates into your calculations to determine if the monthly payment is something you can manage.

Let’s take a look at today’s rates and what they mean for buyers and homeowners.

Looking at today’s mortgage rates, a variety of prominent rates have moved up slightly. The average 30-year and 15-year fixed mortgages both trended upwards. For variable rates, the 5/1 Variable Rate Mortgage (ARM) has also increased.

The averages of the 30-year fixed, 15-year fixed and 5/1 MRAs are:

Mortgage rate trends: what’s behind the recent rate movement?

Inflation has been high this year, with the consumer price index standing at 8.2% year-on-year in September. That was down from August’s 8.3%, but still higher than expected. High inflation has prompted the Federal Reserve to raise its key rate several times this year, most recently by 0.75 percentage points in November.

These factors have both pushed mortgage rates up this year, from around 3.3% in January to over 7% at the end of October.

“Inflation is absolutely in the driver’s seat, especially when it comes to mortgage rates. Until we get lasting evidence that inflation is starting to ease, upward pressure on mortgage rates will persist,” said Odeta Kushi, deputy chief economist at First American Financial Corporation.

Current Mortgage Rates: Are They Good for Buying a Home Right Now?

Whether it’s a good time to buy a home depends more on your personal financial situation than anything else, but it’s important to understand the changes in a rapidly changing housing market. The sharp rise in interest rates has taken many buyers out of the market because it is harder to afford a mortgage, which means less competition and lower house prices.

Declines in home prices, which remain near all-time highs, could help some buyers enter the market. You need to consider all the aspects that go into your monthly payment, and high mortgage rates could more than offset the savings from lower home prices.

“The housing market is currently in the process of rebalancing, so we are facing a situation where mortgages are significantly higher than a year ago, but we are also seeing a deceleration in house prices,” he said. said Odeta Kushi, deputy chief economist at First American Financial Corporation. “You might enter a market where you don’t see the bidding wars that we saw last year; you are not in competition with five other people.

Closing costs and loan costs

The catch-all term for the fees you pay to get a mortgage is closing costs. Everything from prepaid property taxes to your appraisal fees falls into this category. These fees vary depending on the size of your loan, but typically range from 3% to 6% of your loan balance. It’s important to pay attention to the closing costs you pay because the higher your closing costs, the higher your annual percentage rate (APR).

Current Mortgage Refinance Rates

Refinancing has become a little more expensive today as 30-year and 15-year fixed refinance mortgages have seen their average rates increase. Shorter-term 10-year fixed rate refinance mortgages have also seen growth.

Take a look at today’s refinance rates:

Compare national mortgage rates from various lenders .

30-year fixed mortgage interest rate

The median interest rate for a standard, 30-year fixed mortgage is 7.35%, a growth of 25 basis points compared to the previous week.

15-Year Fixed-Rate Mortgage Rates

The median rate for a 15-year fixed mortgage is 6.51%, an increase of 13 basis points from seven days ago.

The monthly payment on a 15-year fixed rate mortgage is higher than what you would pay on a 30-year mortgage. However, 15-year loans have significant advantages: you’ll save thousands of dollars in interest and pay off your loan much sooner.

ARM 5/1 tariffs

A ARM 5/1 has an average rate of 5.58%, up 5 basis points from last week.

An ARM is ideal for households that will sell or refinance before the rate changes. If not, their interest rates could end up being significantly higher after a rate adjustment.

For the first five years, a 5/1 ARM will typically have a lower interest rate than a 30-year fixed mortgage. Keep in mind that your payment could end up being several hundred dollars higher after a rate adjustment, depending on the terms of your loan.

How We Determine Mortgage Rates

To get an idea of ​​current mortgage rate trends, we rely on information collected by Bankrate, which is owned by the same parent company as NextAdvisor. The Daily Rates survey focuses on home loans where the borrower has a FICO score of 740+, an LTV of 80% or less, and the home is owner-occupied.

The table below compares today’s average rates to what they were a week ago and is based on information provided to Bankrate by lenders across the country:

Updated November 4, 2022.

Pro tip

Use The NextAdvisor Mortgage Calculator to see how your monthly mortgage payment changes based on things like your mortgage rate, down payment, and home insurance.

Frequently Asked Questions (FAQ) About Mortgage Rates:

How to benefit from the lowest mortgage rate?

Getting loan offers from a few lenders is a great way to qualify for the lowest interest rate.

The mortgage rate you get depends on a variety of factors that lenders take into account when assessing the likelihood of you paying off your mortgage. Your credit score has an impact on your mortgage rate. And your loan-to-value (LTV) ratio matters, so having a larger down payment is better for your interest rate.

But banks will view your situation differently. So you can give the same documentation to three different mortgage providers and get offers with three different mortgage rates and fees that vary equally.

Should I lock in my mortgage rate now?

Mortgage rates go up and down daily, and it’s impossible to time the market. It is therefore wise to lock in your interest rate now, because overall rates are historically favorable.

A rate lock will only last for a certain amount of time, usually 30 to 60 days. If you have a problem with closing and it looks like your foreclosure rate is expiring, you should contact your lender. They may be able to extend the rate lock, however, you may need to pay a fee for this privilege.