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Mortgage rates are officially the highest they’ve been in decades.

Compared to this time last year, an individual buying a median priced home with a 20% down payment can now expect to pay over $800 more on their monthly mortgage payment than if they purchased in October 2021.

High rates have started to have an impact on the once-hot housing market. Though home prices are still up year-over-year, that growth is slowing rapidly. In many areas, prices have even dropped slightly.

In its most recent forecast, Fannie Mae’s Economic and Strategic Research Group predicted that prices will start to fall in the second quarter of 2023. 

“Looking ahead to the full year 2023, on a national basis, we expect an average home price decline of 1.5%,” Doug Duncan, senior vice president and chief economist at Fannie Mae, said in a press release. “Given the ongoing tension between potential homebuyers and home sellers at the moment, we believe the pace of sales is likely to slow even further, too.”

Mortgage rates today

Mortgage type Average rate today

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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mortgage rates on Zillow

Mortgage refinance rates today

Mortgage type Average rate today

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This information has been provided by
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mortgage rates on Zillow

Mortgage calculator

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.

Mortgage Calculator

$1,161
Your estimated monthly payment

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

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 6.92%, according to Freddie Mac. This is the highest this rate has been 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 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 6.09%, an increase from the prior week, according to Freddie Mac data. This is the first time this rate has surpassed 6% since 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 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 5.81%, an increase from the previous week.

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 5/1 ARM is a 30-year mortgage. For the first five years, you’ll have a fixed rate. After that, your rate will adjust once per year. If rates are higher when your rate adjusts, you’ll have a higher monthly payment than what you started with.

If you’re considering an ARM, make sure you understand how much your rate could go up 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 ticking up from historic lows in the second half of 2021 and have increased significantly so far in 2022.

In the last 12 months, the Consumer Price Index rose by 8.2%. The Federal Reserve has been working to get inflation under control, and is expected to increase the federal funds target rate two more times this year, following increases at its previous five meetings.

Though not directly tied to the federal funds rate, mortgage rates are sometimes pushed up as a result of Fed rate hikes and investor expectations of how those hikes will impact the economy.

Inflation remains elevated, 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 let you 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.

If you’re ready to start shopping for homes, you may apply for preapproval with a lender. The lender does a hard credit pull and looks at the details of your finances to lock in a mortgage rate.



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