Today’s Mortgage, Refinance Rates: Oct. 23, 2022

Insider experts pick the best products and services to help you make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own. The terms apply to the offers listed on this page.

As the next Federal Reserve meeting approaches, mortgage rates have held relatively steady in anticipation of another 75 basis point increase in the fed funds rate.

Mortgage rates fluctuated quite a bit this summer as markets speculated that the Fed may soon take its foot off the gas and slow the rate of hikes. This caused rates to briefly drop below 5%. But since then, key inflation indicators have shown that price growth has remained stubbornly high, and the Fed has repeatedly reiterated that it will continue to aggressively raise rates until inflation shows sustained signs of slowing.

“At times, the market has reacted to incoming economic data suggesting that the Fed is making progress in its fight against inflation by anticipating a possible policy ‘pivot’ to a less restrictive regime, prompting the Fed to reaffirm their determination,” Doug Duncan, senior vice president and chief economist at Fannie Mae, said in a press release earlier this month.

But markets appear to have finally heard the Fed’s message. Mortgage rates have risen rapidly in the past two months and now appear to have peaked as investors price in expectations of bigger hikes to come. Borrowers should expect rates to remain near their current levels through the rest of 2022 and into 2023.

Current mortgage rates

type of mortgage average rate today
This information has been provided by Zillow. See more mortgage rates at Zillow

Current Refinance Rates

mortgage calculator

Use our free mortgage calculator to see how current mortgage rates would affect your monthly payments. By entering different rates and terms, you’ll also understand how much you’ll pay over the entire life of your mortgage.

mortgage calculator

$1,161
Your estimated monthly payment

  • paying a 25% a higher down payment would save you $8,916.08 on interest charges
  • Reduce the interest rate on 1% I would save you $51,562.03
  • Paying an additional $500 each month would reduce the length of the loan by 146 months

Click “More Details” for tips on how to save money on your mortgage over the long term.

30-year fixed mortgage rates

The current average 30-year fixed mortgage rate is 6.94%, according to Freddie Mac. This is the highest rate since 2002.

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 over the life of the loan.

The long term of 30 years allows you to spread your payments over a long period of time, which means you can keep your monthly payments lower and more manageable. The trade-off is that you will 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 6.23%, an increase from the previous week, according to data from Freddie Mac. The last time this rate exceeded 6% was in 2008.

If you want the predictability that comes with a fixed rate but want to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good option 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 will have a higher monthly payment than with a longer term.

Also Read :  VCU Institute for Liver Disease and Metabolic Health will hold first academic symposium on Oct. 13-14 - VCU News

Adjustable Mortgage Rates 5/1

The 5/1 average adjustable mortgage rate is 5.71%, a decrease from the previous week.

Adjustable-rate mortgages can seem very attractive to borrowers when rates are high, because the rates on these mortgages are often lower than fixed mortgage rates. A 5/1 ARM is a 30-year mortgage. For the first five years, you will have a fixed rate. After that, your rate will be adjusted once a year. If rates are higher when your rate adjusts, you’ll have a higher monthly payment than you started with.

If you’re considering an ARM, make sure you understand how much your rate could increase each time it adjusts and how much it could ultimately increase over the life of the loan.

Are mortgage rates going up?

Mortgage rates started rising from record lows in the second half of 2021 and have risen significantly so far in 2022.

In the last 12 months, the Consumer Price Index increased by 8.2%. The Federal Reserve has been working to rein in inflation and is expected to raise the target fed funds rate two more times this year, following hikes at its last five meetings.

Although not directly tied to the fed funds rate, mortgage rates sometimes rise as a result of Federal Reserve rate increases and investor expectations about how those increases will affect the economy.

Inflation remains high, but has started to slow, which is a good sign for mortgage rates and the broader economy.

How do I find personalized mortgage rates?

Some mortgage lenders allow you to customize your mortgage rate on their websites by entering your down payment amount, zip code, and credit score. The resulting rate isn’t set in stone, but it can give you an idea of ​​what you’ll pay.

Also Read :  4 Steps to Lock in a Mortgage Rate

If you’re ready to start buying homes, you can apply for pre-approval with a lender. The lender does a hard credit check and looks at the details of your finances to secure a mortgage rate.

How do I compare mortgage rates between lenders?

You can apply for prequalification with multiple lenders. A lender looks at your overall finances and gives you an estimate of the rate you’ll pay.

If you are further along in the home buying process, you have the option to apply for pre-approval with multiple lenders, not just one company. By receiving letters from more than one lender, you can compare personalized rates.

Applying for a pre-approval requires a strong credit pull. Try to apply with multiple lenders within a few weeks, as grouping all of your hard credit claims into the same time period will hurt your credit score less.

Source

Leave a Reply

Your email address will not be published.