Today’s mortgage, refinance rates: November 17, 2022

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Mortgage rates fell again today and remain at their lowest in over a month.

Rates have been on a downward trend in recent days following last week’s news that inflation slowed in October. As price growth continues to decline, mortgage rates likely will too.

Borrowers are starting to respond somewhat to lower rates: In the Mortgage Bankers Association’s latest weekly survey of mortgage loan applications, mortgage applications were up 2.7% from the previous week.

“Mortgage rates fell last week as signs of slower inflation pushed Treasury yields lower,” MBA vice president and deputy chief economist Joel Kan said in the MBA news release. . “The 30-year fixed rate saw its largest single-week decline since July 2022, falling to 6.9%. Application activity, adjusted for the Veterans Day holiday, surged in response to the decline in rates, driven by a 4% increase in homebuyer applications.”

The past few months have been tough for the housing market, as many buyers have been discounted by decades-high mortgage rates. But if rates fall in 2023, home buying interest should start to rise again.

Mortgage rates today

Mortgage type Average rate today
This information was provided by Zillow. See more mortgage rates on Zillow

Mortgage refinance rates today

Mortgage type Average rate today
This information was provided by Zillow. See more mortgage rates on Zillow

Mortgage calculator

Use our free mortgage calculator to see how today’s interest rates will affect your monthly payments.

Mortgage calculator

Your estimated monthly payment

  • Paying a 25% a higher down payment would save you $8,916.08 on interest expenses
  • Lower the interest rate by 1% it would save you $51,562.03
  • Paying a supplement $500 each month would shorten the loan term by 146 months

By clicking “More Details,” you’ll also see how much you’ll pay over the life of your mortgage, including how much goes toward principal versus interest.

Thirty-year fixed rate mortgage

The current 30-year average fixed mortgage rate is 7.08%, according to Freddie Mac. That’s up from the previous week.

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 in 30 years, and your interest rate won’t change for the life of the loan.

The long 30-year term lets you 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 get a higher rate than you would with shorter terms or adjustable rates.

15 year fixed rate mortgage

The average 15-year fixed-rate mortgage rate is 6.38%, up from the previous week, according to data from Freddie Mac. 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 may 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 will have a higher monthly payment than you would with a longer term.

Adjustable 5/1 mortgage rates

The average 5/1 Adjustable Mortgage Rate is 6.06%, up from the previous week. This is also the first time this rate has exceeded 6% since 2008.

Adjustable-rate mortgages can seem very attractive to borrowers when rates are high, because the rates on these mortgages are usually lower than the rates on fixed-rate mortgages. A 5/1 ARM is a 30-year mortgage. You will have a fixed rate for the first five years. After that, your rate will change once a year. If the rates are higher when your rate adjusts, you will 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 eventually go up over the life of the loan.

How are Fed rate hikes affecting mortgages?

The Federal Reserve raised the federal funds rate this year to try to slow economic growth and keep inflation in check. So far, inflation has slowed slightly, but is still well above the Fed’s 2% target rate.

Mortgage rates are not directly affected by changes to the federal funds rate, but often trend up or down before Fed policy moves. This is because mortgage rates change based on investor demand for mortgage-backed securities, and this demand is often influenced by how investors expect Fed hikes to affect the broader economy.

When inflation starts to fall, mortgage rates should too. But the Fed has indicated it is seeing sustained signs of slowing inflation and won’t stop raising rates anytime soon, although it may start opting for smaller hikes at upcoming meetings.

Will mortgage rates rise in 2022?

Mortgage rates have risen sharply so far in 2022, but there are signs they may have finally peaked.

In October, the consumer price index increased by 7.7% year on year, a significant slowdown from the previous month. This is good news for borrowers and for the economy at large. As inflation falls, mortgage rates likely will too.

But just a month of promising price data isn’t enough to say for sure that the worst of inflation is behind us. If price growth proves stubborn in the coming months and the Fed decides it needs to act more aggressively than currently anticipated, mortgage rates could start rising again.

Are HELOCs a good idea right now?

Many homeowners have gained a lot of equity over the past couple of years as home prices have risen at an unprecedented rate. But because rates are so high now, tapping into that equity can be costly.

For homeowners looking to leverage the value of their home to cover a large purchase, such as a home renovation, a home equity line of credit (HELOC) may still be a good option.

A HELOC is a line of credit that allows you to borrow against the equity in your home. It works similar to a credit card in that you borrow what you need rather than getting the entire amount you’re borrowing in one go.

Depending on your finances and the type of HELOC you get, you may be able to get a better rate with a HELOC than with a home equity loan or cash refinance. Keep in mind that HELOC rates are variable, so if rates start to go up any further, yours will likely go up as well.

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