Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.
As expected, the Federal Reserve decided to enact another 75-basis-point hike to the federal funds rate at its meeting yesterday. This is the third time in a row the central bank has increased its benchmark rate this much, and more hikes are likely coming at its November and December meetings.
Borrowers should expect mortgage rates to remain elevated as the Fed continues tightening monetary policy.
Mortgage rates aren’t directly influenced by the federal funds rate, but they are impacted by investor expectations. Right now, most investors expect the Fed to continue aggressively raising rates until inflation shows sustained signs of slowing.
So far, prices have remained relatively stubborn, so the cost of borrowing — including for mortgages — is likely to remain high for the foreseeable future. But rates may start to come down later next year.
Mortgage rates today
Mortgage refinance rates today
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 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.
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 5.21%, an increase from the prior week, according to Freddie Mac data. The last time this rate was above 5% was in 2009.
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 4.93%, an increase from the previous week.
Source:: Business Insider