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Current Mortgage Refinance Rates, August 10, 2022 | Rates Move Higher

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Current Mortgage Refinance Rates, August 10, 2022 | Rates Move Higher

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Jason Stauffer

Jason Stauffer

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Staff Writer

Jason Stauffer is a personal finance reporter who previously covered the housing and mortgage market for NextAdvisor.…

August 10, 2022 | 6 Min Read

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We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

Today, a few closely followed mortgage refinance rates climbed.

Both the 15-year fixed and 30-year fixed saw their average rates increase. And average rates for 10-year fixed refinances also increased.

Refinance rates have spiked in the early part of this year and seem poised to continue their upward march. Short-term interest rates have already been raised twice by the Federal Reserve this year, and more are to come.

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A borrower should carefully review the numbers before taking out a new mortgage in the current interest rate environment. Simply put, the cost of refinancing is increasing because rates are higher. With that in mind, your refinance rate isn’t the only thing that matters. The fees you pay to close a home loan matter, and can add up to thousands of dollars.

Let’s take a look at the current refi rate trends.

The average mortgage refinance rates are as follows:

  • 30-year mortgage refinance rate: 5.53%
  • The average 15-year fixed refinance rates is 4.82%
  • 10-year mortgage refinance rate: 4.90%

You can discover the right refinance rate for you here.

Refinance Rate Forecast: What Is Driving Mortgage Rate Change?

June’s Consumer Price Index (CPI) reported annual inflation increased again in July to 9.1%. . It still puts it at the level of the 40-year highs we’ve experienced the past few months. And that’s bad news for refinance rates.

To fight high inflation the Federal Reserve has been raising short-term interest rates. Adding to the issue is Russia’s invasion of Ukraine and China’s COVID-19 lockdowns. Both of these geopolitical events threaten to compound existing supply chain issues and add to inflation. And we haven’t even started to feel these supply shocks, “it’s going to take months for those disruptions to seep fully into the supply chain,” Lindsey Piegza, chief economist at Stifel Financial told NextAdvisor.

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All of this means that we could be stuck with high inflation for longer than we’d like, which increases the likelihood that the Fed will need to be aggressive in raising rates.

Is Refinancing Now a Good Idea?

A rate and term refinance can save you money in the long run, but typically you’ll want the new rate to be at least 0.75% to 1% below your current rate. That said, the recent spike in refinance rates has drastically reduced the number of homeowners with interest rates that are well above today’s average rates.

In this hot housing market, the ability to turn the equity in your home into cash with a home equity line of credit (HELOC) has become increasingly popular. A HELOC can be a reasonable option for financing home repairs or improvements, just be sure to understand all of the fine print regardless fees, the interest rate and the repayment schedule..

Pro Tip: Refinance Closing Costs

As part of the refinancing process, you may have to pay upfront fees called closing costs. Fees can average 3% to 6% of your loan balance so it’s important to pay attention to them. A refinance may cut your monthly payment, just make sure that you plan on keeping the loan long enough for the ongoing savings to surpass the out-of-pocket costs.

30-Year Refinance Rates

Right now, the average 30-year fixed refinance has an interest rate of 5.53%, an increase of 8 basis points from what we saw last week.

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You can use our mortgage calculator to get an idea of what your monthly payments will be and to understand how paying more each month will impact your mortgage. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.

15-Year Refi Rates

Currently, the average rate for a 15-year fixed refinance loan is 4.82%, an increase of 12 basis points over the previous week.

Monthly payments on a 15-year refinance loan can be a considerable amount more than what you’d get with a 30-year mortgage. However, a shorter loan term can help you build up equity in your home much more quickly.

10-Year Refinance Rates

The average 10-year, fixed refinance rate is 4.90%, an increase of 23 basis points from what we saw last week.

Monthly payments with a 10-year refinance term would cost even more than what you’d pay on a 15-year loan. The upside is you’d end up paying even less interest over the life of the loan.

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How we determine refinance rates

The table below shows where refinance rates were headed in the last week.

These refi rates are provided by Bankrate. The information is based on homeowners that fit a certain profile, such as the home is an owner occupied single family residence. So you may qualify for different rates if your personal circumstances don’t align with the survey criteria.

Bankrate is owned by Red Ventures, Nextadvisor’s parent company.

Rates as of August 10, 2022.

Take a look at mortgage refinance rates for a number of different loans.

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Refinance Rate Frequently Asked Questions (FAQ):

Is It Still a Good Time to Refinance?

Refinance rates, though higher than the all-time record lows, are still lingering at uncommonly low levels. A lower rate can reduce your mortgage payment, so if you haven’t refinanced in the past few years, today’s low interest rates can make now a good time to do so.

However, your interest rate isn’t the only factor to consider when determining if now is the right time for you to refinance. The number of years you have left on your existing mortgage and your new repayment term will also influence your decision. A 30-year refinance loan may not make sense for you depending on how long you’ve had your current mortgage. However, you will pay more each month if you choose a shorter-term refinance, although depending on how much you can reduce your interest rate it may balance out.

Before you jump on an exceptionally low refinance rate, be sure that the overall deal makes sense for you.

How to Qualify for the Lowest Refinance Rate

Mortgage refinance rates are influenced by your personal finances. Having a healthier credit score and lower loan-to-value (LTV) ratios will usually receive a bigger markdown on the mortgage refinance rates they are offered.

But your personal financial situation isn’t the only consideration that affects your interest rate. The equity you have in the home also comes into play. Having at least 20% equity in your property is ideal.

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The type of mortgage loan has an affect on what your refinance rate will be. A loan with a shorter repayment term usually has lower interest rates than a loan with longer terms. The type of mortgage refinance you need makes a difference in the refinance interest rate. Cash-out mortgage refinance loans typically have higher mortgage refinance rates than other loans.

What Is the Average Cost of Refinancing?

When you refinance a mortgage the closing cost typically range from 3% to 6% of the loan amount. So for a $300,000 loan, you can expect to pay $9,000 to $18,000 in closing costs.

There are a number of factors that different lenders consider when assessing your situation. Compare your options and shop around. Everything from where the home is located to what loan type you’re refinancing into could impact your upfront costs.

Current Mortgage Rates by Loan Type

Mortgage Refinance Rates

  • 30 Year Fixed Refinance Rates
  • 15 Year Fixed Refinance Rates
  • VA Refinance Rates
  • Jumbo Refinance Rates

Home Loan Purchase Rates

  • 30 Year Fixed Mortgage Rates
  • 20 Year Fixed Mortgage Rates
  • 15 Year Fixed Mortgage Rates
  • 10 Year Fixed Mortgage Rates

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Mortgage Refinance Rates Today, October 4, 2022 | Rates Return Below 7%

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Mortgage Refinance Rates Today, October 4, 2022 | Rates Return Below 7%

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Jason Stauffer

Jason Stauffer

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Staff Writer

Jason Stauffer is a personal finance reporter who previously covered the housing and mortgage market for NextAdvisor.…

October 4, 2022 | 6 Min Read

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We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

Today, several benchmark mortgage refinance rates made gains.

Both the 15-year fixed and 30-year fixed saw their average rates drop compared to yesterday.

Refinance rates have spiked in the early part of this year and seem poised to continue their upward march. We’ve already seen multiple increases in short-term interest rates and the Fed has plans for more to come.

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Right now, it’s as important as ever for homeowners to carefully consider whether or not now is the right time to refinance. Due to higher interest rates, refinancing costs are increasing. Keep in mind, when deciding to refinance there are other factors outside of just the rate to consider. The interest you’re paying over time is one thing, but the upfront closing costs can be 3% to 6% of the loan amount. That’s potentially thousands of dollars in fees.

Let’s take a look at the current refi rate trends.

Refinance rates currently are:

  • 30-year mortgage refinance rate: 6.83%
  • Currently, the average 15-year fixed-rate refinance is 6.11%
  • The average 10-year fixed refinance rate is 6.14%

Compare refinance rates for a wide range of different loans here.

Where Are Refinance Trending?

July’s Consumer Price Index (CPI) reported annual inflation is lower than June, but still inflated, at 8.5%. And that means refi rates are likely to see more increases as long as inflation remains high.

To fight high inflation the Federal Reserve has been raising short-term interest ratesAll of this means that we could be stuck with high inflation for longer than we’d like, which increases the likelihood that the Fed will need to be more aggressive in raising rates.

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Does Refinancing Still Make Sense?

Generally speaking, homeowners could save thousands with a rate and term refinance if their new rate is 0.75% to 1% below their current rate. That said, the recent spike in refinance rates has drastically reduced the number of homeowners with interest rates that are well above today’s average rates.

There are alternatives to refinancing. With values rising in today’s housing market, homeowners may want to turn that value into cash. With rates where they are, a home equity line of credit (HELOC) may make sense for you because you won’t have to take out a new mortgage. A HELOC can be a reasonable option for financing home repairs or improvements, just be sure to understand all of the fine print regardless fees, the interest rate and the repayment schedule..

Pro Tip: Refinance Closing Costs

For a new mortgage, you will have to pay upfront fees totaling 3% to 6% of the loan amount. It is a significant expense that needs to be taken into account in the refinancing process. Refinancing often or selling a house soon after refinancing can result in your monthly savings not exceeding the fees you paid.

Average 30-Year Refinance Rates

Right now, the average 30-year fixed refinance has an interest rate of 6.83%, an increase of 8 basis points from what we saw last week.

You can use our mortgage calculator to determine how much your mortgage will cost you every month and to understand what the effects of making extra payments would be. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.

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Average 15-Year Refinance Rates

Currently, the average rate for a 15-year fixed refinance loan is 6.11%, an increase of 16 basis points from what we saw last week.

Monthly payments on a 15-year refinance loan will be bigger compared to a 30-year refinance at the same rate. However, a shorter loan term can help you build up equity in your home much more quickly.

10-Year Fixed Refi Rates

The average 10-year, fixed refinance rate is 6.14%, an increase of 8 basis points from a week ago.

Monthly payments with a 10-year refinance term would cost even more than what you’d pay on a 15-year loan. The upside is you’d end up paying even less interest over the life of the loan.

How we calculate our refi rates

Our refi rate trends are based Bankrate’s daily rate data, which is owned by the same parent company as NextAdvisor. These overnight refi interest rate averages are based on a customer profile of the following:

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  • At least 20%+ equity
  • Primary residence
  • FICO score 740+
  • Existing single-family detached home (not new construction)

The information provided to Bankrate from lenders nationwide is displayed in the table below:

Rates as of October 4, 2022.

Take a look at mortgage refinance rates for a number of different loans.

Refinance Rate Frequently Asked Questions (FAQ):

Should I Refinance Right Now?

Even though refinance rates are higher than the recent record lows, they are still historically favorable. If you want to reduce your mortgage payment by refinancing to a lower rate, and you haven’t refinanced in the past few years, then now is still a good time to look into refinancing.

However, your interest rate isn’t the only factor to consider when determining if now is the right time for you to refinance. Refinancing into a new home loan can add years onto your mortgage. If you’re close to paying off your existing mortgage, then you’ll want to factor in the trade offs. Those who have been paying on their current mortgage for 10 years may want to refinance to a 20 year loan so that they aren’t adding more years to the loan’s back end. However, you will pay more each month if you choose a shorter-term refinance, although depending on how much you can reduce your interest rate it may balance out.

Make sure the overall deal makes sense before taking advantage of an today’s low refinance rates.

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How to Ensure You Get the Best Refi Rate

Refinance rates are influenced by your personal finances. If you have a higher credit score and lower loan-to-value (LTV) ratios will generally be able to get lower refinance mortgage rate.

But your personal financial situation isn’t the only consideration that affects your mortgage refinance rate. The amount of equity you have in the home also comes into play. You want to have at least 20% equity, or a loan-to-value ratio of 80% or less.

Even the mortgage itself will impact your mortgage refinance rate. A loan with a shorter repayment term generally has lower interest rates than loans with longer repayment terms, all else equal. The type of refinance you need makes a difference in the interest rate. A cash-out refinance loan typically has an interest rate than other types of refinance loans.

Average Cost of Refinancing

The cost of refinancing can vary widely depending on these factors:

  • Where the property is located
  • Type of refinance loan
  • What lender you choose
  • Loan amount
  • Your credit score
  • Home’s equity

In general, refinance closing costs are 3% to 6% of the loan balance. Your state and local regulations can influence what fees and taxes you pay. Having more equity in the home and a higher credit score will make it easier to qualify for the refinance loan, secure a lower rate, and to get lenders to compete for your business.

Mortgage Rates by Loan Type

Mortgage Refinance Rates

  • 30 Year Fixed Refinance Rates
  • 15 Year Fixed Refinance Rates
  • VA Refinance Rates
  • Jumbo Refinance Rates

Home Purchase Interest Rates

  • 30 Year Fixed Mortgage Rates
  • 20 Year Fixed Mortgage Rates
  • 15 Year Fixed Mortgage Rates
  • 10 Year Fixed Mortgage Rates

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Mortgage Interest Rates Today, October 4, 2022 | Rates Fall Back Under 7%

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Mortgage Interest Rates Today, October 4, 2022 | Rates Fall Back Under 7%

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Jason Stauffer

Jason Stauffer

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Staff Writer

Jason Stauffer is a personal finance reporter who previously covered the housing and mortgage market for NextAdvisor.…

October 4, 2022 | 6 Min Read

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We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

This isn’t the same mortgage rate environment as last year.

The average interest rate for a 30-year fixed rate mortgage has doubled in the last year, with high inflation largely to blame. Rates have risen significantly as the Federal Reserve has hiked its key interest rate to fight that high inflation.

For homebuyers, those big changes in mortgage rates mean higher monthly payments, even as the prices of homes have started to come down a bit. The most important thing for consumers is to ensure that the house you’re thinking of buying is one you can afford. Factor changes to prices and to mortgage rates into your calculations when determining if the monthly payment is something you can manage.

Let’s look at today’s rates and what they mean for buyers and homeowners.

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The most principal mortgage rates all dropped today.

Mortgage rates currently are:

  • Today’s average 30-year fixed mortgage rate is 6.85%
  • Today’s 20-year fixed mortgage rate is 6.89%
  • The average 15-year fixed-rate mortgage currently sits at 6.07%
  • 10-year fixed mortgage rates are averaging 6.13%
  • Today’s average 5/1 adjustable-mortgage rate is 5.28%

Mortgage Rate Trends: Why Are Mortgage Rates Changing So Fast?

Mortgage rates have been pushed up primarily by the highest inflation in four decades. The consumer price index showed prices up 8.3% year-over-year in August, compared to 8.5% in July. Inflation has remained higher than expected.

In response to that high inflation, the Federal Reserve has increased its benchmark short-term interest rate, known as the federal funds rate. In September it raised the federal funds rate by 75 basis points for the third time in a row. While the Fed’s changes don’t directly drive increases in mortgage rates, they have some correlation because they both respond to inflation.

“Inflation is absolutely in the driver’s seat, particularly as it pertains to mortgage rates. Until we get some sustained evidence that inflation is beginning to recede, the upward pressure on mortgage rates will remain,” says Odeta Kushi, deputy chief economist at First American Financial Corporation.

Current Mortgage Rates: Are They Good For Buying a Home Right Now?

The big increase in mortgage rates this year has taken a lot of potential homebuyers out of the market. That could present opportunities for you – if you can afford the higher cost of borrowing money.

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Homebuyers are facing less competition and prices are down compared to their all-time highs earlier this year, but they’re still high. If you can find a deal you can afford, it can still be a good opportunity. After all, nobody knows what mortgage rates and prices will be like next year, and buying a home is a lifestyle decision, not just a financial one.

“It’s always a good time to buy a home, if that’s what is important to you. It’s just about doing your research and making good informed decisions,” says Eileen Derks, head of mortgage at Laurel Road, an online lender owned by KeyBank that specializes in serving health care professionals.

What to Know About Loans Fees

The catchall term for the fees you pay to get a mortgage is closing costs. The fees for your appraisal, title insurance, and any lender origination charges are all part of your closing costs. Certain closing costs vary by loan size, but overall you can expert to pay 3% to 6% of the total loan balance.. Keeping track of your closing costs is crucial because a higher closing cost will result in a higher APR.

Current Mortgage Refinance Rates

Refinancing became a bit more expensive today as 30-year fixed and 15-year fixed refinance mortgages saw their mean rates go up. Shorter term, 10-year fixed-rate refinance mortgages also saw an increase.

The average refinance rates are as follows:

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  • 30 Year Fixed Refinance Rates: 6.83%
  • 20-year fixed refinance rate: 6.91%
  • 15-year fixed refinance rates are averaging 6.11%
  • 10-year fixed-rate refinance: 6.14%

Find current mortgage rates for today.

30-Year Fixed-Rate Mortgage Rates

For a 30-year fixed-rate mortgage, the average rate you’ll pay is 6.85%, which is a growth of 13 basis points from the previous week.

15-Year Fixed-Rate Mortgage Rates

The median rate for a 15-year fixed mortgage is 6.07%, which is an increase of 21 basis points from seven days ago.

A 15-year, fixed-rate mortgage’s monthly payment is, undeniably, a much bigger monthly payment than what you’d get with a 30-year mortgage offering the same interest rate. However, 15-year loans have some considerable benefits: You’ll pay thousands less in interest and pay off your loan much earlier.

5/1 ARM Rates

A 5/1 ARM has an average rate of 5.28%, which is an increase of 22 basis points compared to last week.

An adjustable-rate mortgage is ideal for borrowers who will refinance or sell before the rate changes. If that’s not the case, their interest rates could end up being markedly higher after a rate adjusts.

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For the first five years, a 5/1 ARM will typically have a lower interest rate compared to a 30-year fixed mortgage. Keep in mind that depending on how much your loan’s rate adjusts, your payment has the potential to increase by a large amount.

How Our Mortgage Rates Are Calculated

To get an idea of where mortgage rate may move, we rely on information collected by Bankrate, which is owned by the same parent company as NextAdvisor. The daily rates survey focuses on mortgages where the borrower has a FICO score of 740 or more, 20% equity or more, and the home is occupied by the owner.

The current average rates listed below and based on the Bankrate mortgage rate survey:

Rates as of October 4, 2022.

Pro Tip

Add your mortgage or refinance rate and other estimated figures into NextAdvisor’s mortgage calculator to get a good idea of what your monthly payment will be.

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Mortgage Rate Frequently Asked Questions (FAQ):

How Do I Get the Lowest Mortgage Rate?

There are two key considerations to getting the lowest mortgage rate: Loan-to-value ratio (LTV), and your credit score.

Having a credit score of at least 750 will help you secure the best rate. However, even a score of over 700 can get you a noticeable rate reduction compared to a lower credit score. Once your score starts climbing above 800, the mortgage rate discount won’t be meaningful.

Banks offer the most substantial mortgage rate reductions to home buyers that are deemed less risky. One surefire way to show you’re a less risky borrower is to have a bigger down payment. A down payment of 20% or more will save you money in two ways: with a more favorable mortgage rate, and you’ll be able to avoid paying for private mortgage insurance (PMI).

Is It a Good Idea to Lock in My Mortgage Rate Right Now?

It’s impossible to know what direction mortgage rates will go from day to day. That’s why a mortgage rate lock is such a useful tool because it protects you if rates go up. And with interest rates being relatively low right now, you should lock in your rate as soon as you can.

When you lock in your rate, ask your lender how long the lock will last. A rate lock can be good for anywhere from 30 to 60 days, which typically will give you enough time to close before the lock expires. If something happens where you need to extend your rate lock, ask about fees as many lenders charge a fee for extending a rate lock.

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Here Are Today’s Mortgage Rates, September 29, 2022 | Rates Remain Above 6.8%

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Here Are Today’s Mortgage Rates, September 29, 2022 | Rates Remain Above 6.8%

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Jason Stauffer

Jason Stauffer

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Staff Writer

Jason Stauffer is a personal finance reporter who previously covered the housing and mortgage market for NextAdvisor.…

September 29, 2022 | 6 Min Read

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We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

Mortgage rates have changed dramatically since the start of the year.

The average rate for a 30-year fixed rate has doubled since sitting around 3% this time a year ago. High inflation is a major cause of rising rates, along with the Federal Reserve’s increases to its own interest rate to quell that high inflation.

High mortgage rates have turned the housing market upside down, with a previously hyper-competitive market now cooling significantly. While prices are falling in some areas, that may not make up for the increased costs homebuyers face in the form of significantly higher mortgage rates. Be sure to calculate your monthly payment – and give yourself wiggle room in your budget – to decide if a home is actually affordable to you.

Here are today’s average interest rates and what they mean for borrowers.

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Looking at today’s mortgage rates the most preeminent rates moved up. The growth in 30-year fixed mortgage rates is making headlines, but don’t forget about fixed 15-year rates, which inched up as well. The most common type of variable-rate mortgage is the 5/1 adjustable-rate mortgage (ARM) also climbed.

The average mortgage rates are as follows:

  • 30-year fixed mortgage rates are averaging 6.82%
  • 20-year fixed mortgage rates are averaging 6.81%
  • 15-year mortgage rate: 5.97%
  • The average 10-year fixed-rate mortgage currently sits at 6.07%
  • The average 5/1 adjustable mortgage currently sits at 5.20%

Mortgage Rate Forecast: What Is Driving Mortgage Rate Change?

Inflation has been high this year, with the consumer price index at 8.3% year-over-year in August. That was down from July’s 8.5%, but still higher than expected, and it prompted the Federal Reserve to raise its key interest rate by 0.75 percentage points for the third time in a row this year.

Those factors have both pushed mortgage rates higher this year, from around 3.3% in January to more than 6% at the end of September.

“Inflation is absolutely in the driver’s seat, particularly as it pertains to mortgage rates. Until we get some sustained evidence that inflation is beginning to recede, the upward pressure on mortgage rates will remain,” says Odeta Kushi, deputy chief economist at First American Financial Corporation.

Is It a Good Time to Buy a Home With Rates Where They Are?

Whether it’s a good time to buy a home depends more on your personal financial situation than anything else, but it’s important to understand the changes in a fast-moving housing market. The big surge in interest rates has taken a lot of buyers out of the market because it’s harder to afford a mortgage – meaning less competition and lower home prices.

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The drops in home prices, which remain near all-time highs, might help some buyers get in the market. You need to factor in all the aspects that go into your monthly payment, and high mortgage rates could more than offset the savings from lower home prices.

“The housing market is currently rebalancing so we’re facing a situation where mortgages are significantly higher than they were a year ago, but we’re also seeing house prices decelerate,” says Odeta Kushi, deputy chief economist at First American Financial Corporation. “You might enter a market where you don’t see the bidding wars that we saw last year; you’re not competing against five other people.”

What to Know About Loans Fees

The industry term for the upfront fees you pay when you get a home loan is closing costs. Everything from the prepaid property taxes to your appraisal fees fall into this category. Certain closing costs vary by loan size, but overall you can expert to pay 3% to 6% of the total loan balance.. Paying attention to the closing costs you pay is important because the higher your closing costs, the higher your annual percentage rate (APR) will be.

Today’s Mortgage Refinance Rates

Refinance rates grabbed headlines today. We saw a dramatic increase in rates for 30-year fixed loans. Interestingly, 15-year fixed-rate refinances moved in the opposite direction and went down. Shorter term, 10-year fixed-rate refinance mortgages also moved up.

The refinance averages for 30-year, 15-year, and 10-year loans are:

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  • 30-year fixed refinance rates are averaging: 6.83%
  • 20-year refinance rate: 6.82%
  • 15-year fixed refinance rates are averaging 6.01%
  • 10-year fixed refinance rates are averaging 6.09%

Check out mortgage rates that meet your distinct needs.

30-Year Fixed-Rate Mortgage Rates

The average 30-year fixed mortgage interest rate is 6.82%, which is an increase of 39 basis points from last week.

15-Year Mortgage Rates

The median rate for a 15-year fixed mortgage is 5.97%, which is an increase of 31 basis points compared to a week ago.

A 15-year, fixed-rate mortgage’s monthly payment will be much bigger. So finding room in your budget for a 30-year loan’s monthly payment would be less difficult. However, 15-year loans have some considerable benefits: You’ll save thousands of dollars in interest and pay off your loan much sooner.

5/1 ARM Mortgage Rates

A 5/1 ARM has an average rate of 5.20%, which is a rise of 36 basis points from the same time last week.

An ARM is ideal for individuals who will sell or refinance before the rate changes. If that’s not the case, their interest rates could end up being markedly higher after a rate adjusts.

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For the first five years, a 5/1 ARM will typically have a lower interest rate compared to a 30-year fixed mortgage. Keep in mind that depending on how much your loan’s rate adjusts, your payment has the potential to increase by a large amount.

How We Determine Mortgage Rates

To get an idea of the current mortgage rate trends, we rely on information collected by Bankrate, which is owned by the same parent company as NextAdvisor. The daily rates survey focuses on home loans where the borrower has a FICO score of 740 or more, 20% equity or more, and lives in the home.

The mortgage interest rate data listed below and based on the Bankrate mortgage rate survey:

Updated on September 29, 2022.

Pro Tip

Use our mortgage calculator to see how your monthly mortgage payment changes based on factors like your interest rate, homeowners insurance, and property taxes.

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Mortgage Rate Frequently Asked Questions (FAQ):

How Do I Qualify for the Lowest Mortgage Rate?

There are two main considerations to getting the best mortgage rate: Loan-to-value ratio (LTV), and your credit score.

Having a credit score over 750 will help you qualify for the best rate. However, even a score of over 700 can get you a decent rate reduction compared to a lower credit score. However, once you get a credit score higher than 800, the mortgage rate discount won’t be meaningful.

Mortgage providers offer the biggest mortgage rate discounts to borrowers that are deemed less risky. A sizeable down payment is a sign to lenders that you have more skin in the game and are less likely to default on your loan. A down payment of 20% or more will save you money in two ways: with a more favorable mortgage rate, and you’ll be able to avoid paying for private mortgage insurance (PMI).

Should I Lock in My Mortgage Rate Now?

Mortgage rates move up and down on a daily basis, and it’s impossible to time the market. So locking in your interest rate right now is a good idea because overall, rates are historically favorable.

A rate lock will only last for a set amount of time, typically 30-60 days. If you hit a snag during closing and it looks like your rate lock will expire you should talk with your lender. It may offer an extension of the lock, however, you might have to pay a fee for that privilege.

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Curious About I Bonds? Join Our Free Workshop Curious About I Bonds? Join Our Free Workshop
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