Staying informed about mortgage rate updates is paramount for both homebuyers and sellers. This week, a notable shift in the mortgage rate market was witnessed, as rates experienced an upward trajectory compared to the previous week. Along with this week’s mortgage rate update, the Federal Open Market Committee (FOMC) meeting, taking place next week, is also being anticipated.
Rate Recap:
This week, prospective homebuyers and industry professionals observed a rise in mortgage rates compared to the previous week. While last week may have seen rates at relatively favorable levels, the current upward trend signals a shift in market dynamics. This adjustment underscores the importance of staying vigilant and adaptable in response to fluctuations in the mortgage rate landscape.
Understanding the Increase:
Several factors may have contributed to the increase in mortgage rates observed this week. Economic indicators such as inflationary pressures, labor market trends, and geopolitical developments can influence the trajectory of interest rates. Additionally, market sentiment, investor behavior, and Federal Reserve policies play pivotal roles in shaping mortgage rate movements.
Looking Ahead:
As we navigate the implications of this week’s rate increase, it’s essential to look forward and anticipate what the future may hold. One notable event on the horizon is the FOMC meeting scheduled for next week. During this meeting, policymakers will convene to assess economic conditions, inflationary pressures, market trends, and monetary policy objectives. The outcomes of the FOMC meeting can have significant ramifications for mortgage rates and the broader real estate market. The mortgage rate update for the week reflects a notable increase compared to the previous week. While this shift may present challenges for some, it also underscores the dynamic nature of the real estate market.
|
Product |
Rate |
Last Week |
Change |
|
30-year fixed |
6.49% |
5.99% |
⇧ 0.5 |
|
15-year fixed |
5.99% |
5.375% |
⇧ 0.615 |
|
30-year fixed with $1,500 lender credit |
6.99% |
6.625% |
⇧ 0.365 |
|
30-year FHA with $1,500 lender credit |
6.625% |
6.25% |
⇧ 0.375 |
|
30-year FHA |
6.249% |
5.74% |
⇧0.509 |
|
30-year VA |
6.249% |
5.74% |
⇧0.509 |
DISCLAIMER: ALL LOANS ARE SUBJECT TO CREDIT APPROVAL. INTEREST RATES ARE SUBJECT TO CHANGE DAILY AND WITHOUT NOTICE. CURRENT INTEREST RATES SHOWN ARE INDICATIVE OF MARKET CONDITIONS AND INDIVIDUAL QUALIFICATIONS AND WILL VARY UPON YOUR LOCK-IN PERIOD, LOAN TYPE, CREDIT SCORE, LOAN TO VALUE, PURPOSE, AND LENDING SOURCE.
30-year fixed-rate mortgages
Presently, the 30-year fixed-rate mortgage sits at 6.49%, reflecting an increase of 50 basis points from the preceding week. Despite its interest rate being higher than that of the 15-year mortgage, the 30-year option is favored by many buyers for its advantage of providing more budget-friendly monthly payments.
15-year fixed-rate mortgages
The current interest rate for a 15-year fixed-rate mortgage is 5.99%, showcasing a rise of 61.5 basis points from the week prior. Choosing a 15-year mortgage enables borrowers to pay back their loan repayment quicker compared to the 30-year option. While this leads to increased monthly payments, it substantially diminishes the total interest paid over the loan’s duration.
30-year fixed-rate with a $1,500 lender credit
A 30-year fixed-rate mortgage with a $1,500 lender credit offers borrowers the stability of a fixed interest rate over a long loan term, along with financial assistance from the lender to offset some of the upfront costs associated with obtaining the mortgage. The current interest rate stands at 6.99%, 36.5 basis point higher than last week.
Use our free mortgage and amortization calculators to calculate your monthly payment, including insurance, taxes, and interest.