The average 30-year fixed mortgage rate is over half a percentage point lower now than it was two weeks ago. Rates have been volatile in recent weeks, but have generally trended down as markets prepare for a possible recession.

The Federal Reserve has been raising the federal funds rate to try to tame inflation, and many now fear that it won’t be able to do so without slowing the economy too much.

Some have even speculated that we’re already in a recession, pointing to the fact that the gross domestic product has fallen two quarters in a row. But on Friday, the Bureau of Labor Statistics announced that the US added 528,000 jobs in July, which was well above what many economists had been expecting.

Mortgage rates may remain volatile as the results of the Fed rate hikes continue to play out.

Current mortgage rates
Current refinance rates
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Use our free mortgage calculator to see how today’s mortgage rates would impact your monthly payments. By plugging in different rates and term lengths, you’ll also understand how much you’ll pay over the entire length of your mortgage.

Click “More details” for tips on how to save money on your mortgage in the long run.

30-year fixed mortgage rates

The current average 30-year fixed mortgage rate is 4.99%, according to Freddie Mac. This is a decrease from last week, when it was at 5.3%, and the second week in a row this rate has gone down.

The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you’ll pay back what you borrowed over 30 years, and your interest rate won’t change for the life of the loan.

  Today's mortgage and refinance rates: August 12, 2022 | Rates increased this week

The lengthy 30-year term allows you to spread out your payments over a long period of time, meaning you can keep your monthly payments lower and more manageable. The trade-off is that you’ll have a higher rate than you would with shorter terms or adjustable rates. 

15-year fixed mortgage rates

The average 15-year fixed mortgage rate is 4.26%, a decrease from the prior week, according to Freddie Mac data. This is the second consecutive week this rate has decreased.

If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you’ll have a higher monthly payment than you would with a longer term.

5/1 adjustable mortgage rates

The average 5/1 adjustable mortgage rate is 4.25%, a slight decrease from the previous week. This is the third week in a row this rate has dropped.

Adjustable rate mortgages can look very attractive to borrowers when rates are high, because the rates on these mortgages are typically lower than fixed mortgage rates. A …read more

Source:: Business Insider

      

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