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Mortgage rates are holding relatively steady this week after dropping significantly late last week. Average 30-year fixed rates remain at the lowest level they’ve been in a month.
Mortgage rates first surpassed 7% late in October, the highest rates have been in 20 years. Though they’ve since trended down, rates are still more than three percentage points higher now than they were at the start of 2022.
This rapid increase in rates has significantly cut into affordability for borrowers, and has pushed many hopeful homebuyers out of the market. In September, existing-home sales were down nearly 24% year-over-year, according to the National Association of Realtors.
The housing market is likely to remain sluggish until rates come down further, which may start to happen in 2023. But even when rates finally drop, it likely won’t be down to the historic lows we saw in 2020 and 2021, when 30-year fixed rates dropped below 3%.
For borrowers navigating the market right now, utilizing cost-saving strategies is more important than ever. Shop around with multiple mortgage lenders to find the one with the lowest rates and fees, make a larger down payment to lower the amount you need to borrow, and be open to mortgage options you wouldn’t normally consider, such as a shorter term or an adjustable-rate mortgage.
Current mortgage rates
Current refinance rates
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 6.38%, an increase from the prior week, according to Freddie Mac data. The last time this rate was above 6% was in 2008.
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 …read more
Source:: Business Insider