Current Mortgage and Refinancing Rates on Nov 8, 2022 – Most Rates Increased

Mortgage rates are almost higher than they were a week ago, according to data compiled by Bankrate. Rates on 30-year fixed, 5/1 ARM, and jumbo loans increased, while 15-year fixed rates decreased.

Mortgage rates have been tumbling lately as the Federal Reserve cracks down on inflation, pushing the 30-year fixed rate past the once unthinkable threshold of 7%.

“The speed at which mortgage rates have risen in recent months has been whiplash-inducing, and the cumulative impact from about 3% at the start of the year to about 7% now seems laughably unlikely at the start of the year. Bankrate Chief Financial Analyst Greg McBride said: “Highest inflation in 40 years will make that possible.”

Central banks hiked rates again at their November meeting, but a toss-up is next. Some expect mortgage rates to rise further, possibly above 8%, while others say his subsequent Fed rate hike is already being considered and rates should stabilize. Others see the Fed retreating at the end of the year.

Prices were last updated on November 8, 2022.

The rates above are market averages based on: Assumptions shown hereActual charges displayed on the site may vary.This story was reviewed by Suzanne De VitaAll rate data is as of Tuesday, November 8, 2022 at 7:30 am.

Getting multiple offers can save you thousands of dollars over the life of your mortgage.

“Many homeowners choose the path of least resistance when obtaining a mortgage because the process of buying a home can be stressful, complicated and time consuming,” said Mark Hamrick, senior economic analyst at Bankrate. It’s for that reason,” he said. “But when we’re talking about the potential to save a lot of money, seeking the best deal on a mortgage offers a great return on investment. Even though it just takes a little more effort to shop, Why should you keep that money on the table? What’s the highest interest rate or lowest cost on your mortgage?”

mortgage interest rate

30-year fixed-rate mortgages rise, +0.10%

The average 30-year fixed mortgage rate is 7.32%, up 10 basis points from a week ago. A month ago, the average interest rate for a 30-year fixed mortgage was 7.08%.

At current average interest rates, you would be paying $686.93 monthly in principal and interest for every $100,000 borrowed. That’s an extra $6.79 compared to last week.

30 year mortgage vs. 15 year mortgage

Standard lending practices have taken the 30-year fixed-rate mortgage as the go-to for most homebuyers.

However, with a 15-year mortgage, you can increase your monthly loan payments and pay off the loan in half the time if the borrower is willing to do so. The main difference between eligibility for a 15-year and 30-year mortgage is that to get a 15-year mortgage, you need to have a higher income and a higher debt-to-income (DTI ) is required to be low. .

15-year mortgages eased,-0.04%

The average 15-year fixed mortgage rate was 6.43%, down 4 basis points over the past seven days.

Monthly payments for a 15-year fixed mortgage at that rate cost about $867 per $100,000 borrowed. This is obviously a lot more than the monthly payments of a 30 year mortgage at that rate, but it has some big advantages. Over the life of the loan, you can save thousands of dollars in total interest expense and grow your wealth even further. quickly.

5/1 ARM rate advances, +0.06%

The 5/1 ARM average rate was 5.59%, up 6 basis points from a week ago.

A variable rate mortgage (ARM) is a mortgage with a variable rate. Put another way, unlike fixed rate loans, the interest rate can change periodically over the life of the loan. These types of loans are perfect for those who sell or plan to sell. refinancing Before the first or second adjustment. Interest rates can be significantly higher when and after the loan is first adjusted.

Borrowers had avoided ARMs during the pandemic of ultra-low interest rates, but as mortgage rates rose, this type of loan made a comeback.

5/1 ARM’s 5.59% monthly payment costs about $573 for every $100,000 borrowed in the first five years, but can be hundreds of dollars higher thereafter depending on the terms of the loan.

Current jumbo mortgage interest rates will rise, +0.10%

Average jumbo mortgage rates today are 7.31%, up 10 basis points from last week. A month ago, the average jumbo mortgage rate was lower at 7.08%.

At today’s average interest rates, for every $100,000 you borrow you’ll pay $686.25 monthly for principal and interest. That’s an extra $6.78 compared to last week.

Summary: How interest rates have changed

  • 30-Year Fixed Mortgage Rates: 7.32%, up from 7.22% last week, +0.10
  • 15-Year Fixed Mortgage Rate: 6.43%, down from 6.47% last week, -0.04
  • 5/1 ARM Mortgage Rates: 5.59%, up from 5.53% last week, +0.06
  • Jumbo Mortgage Rates: 7.31%, up from 7.21% last week, +0.10

Mortgage refinancing rate

The refinancing rate of 30-year mortgages has risen, +0.10%

The average 30-year fixed refinancing rate was 7.32%, up 10 basis points over the last seven days. A month ago, the average interest rate for a 30-year fixed refinancing was 7.07%.

At current average interest rates, you would pay $686.93 monthly in principal and interest for every $100,000 borrowed. That’s an extra $6.79 compared to last week.

Mortgage Rate Trends: The Direction of Rates

Gone are the days when 30-year fixed mortgage rates were below 3%, and interest rates have so far risen above 7% in 2022.

“Low interest rates were the medicine for the post-financial crisis economic recovery, but the recovery was slow, so interest rates never rose significantly,” says McBride. “The recovery in the economy, especially inflation, in the late phase of the pandemic has been very pronounced, and now against the backdrop of the fastest rise in mortgage rates in decades.”

Compare mortgage terms

A 30-year fixed mortgage is the most popular loan for homeowners. This type of loan has many advantages such as:

  • Lower your monthly payment: Compared to short-term mortgages such as 15 years, a 30-year mortgage has less spread of payments over time.
  • Stable: A 30-year mortgage with fixed consistent principal and interest payments. Predictability allows you to plan your housing costs for the long term. Remember: If homeowners insurance and property taxes go up or, less likely, go down, your monthly home payment could change.
  • Purchasing power: Paying less means you can take out more loans and buy more expensive homes.
  • Flexibility: With a lower monthly payment, you can use part of your monthly budget for other goals, such as emergencies, retirement, college tuition, or home repairs and maintenance.
  • Strategic use of debt: Some argue that Americans are too focused on paying off their mortgages rather than putting money into their retirement accounts. A 30-year fixed mortgage, which requires a lower monthly payment, allows him to save more for his old age.

That said, interest rates are historically low, making short-term loans more popular. The monthly repayment amount is higher than a 30-year mortgage, but if you can pay the initial cost, there is a big advantage. Short-term loans help you achieve the following:

  • Significant reduction in interest expense: You can pay off your loan sooner, so you can pay less interest overall.
  • Low interest rate: In addition to the short time it takes for that interest to compound, most lenders price short-term mortgages at lower interest rates.
  • Build equity faster: The sooner you pay off your mortgage, the sooner you can own the value of your home. This is especially useful if you want to rent out your property to fund other expenses.
  • Get Out of Debt Faster: A short-term mortgage means you can own a home for free faster than a long-term loan.

Is now the time to buy a house?

There will never be a direct answer to this question. it always depends. Do you have a steady income, a good credit score, and money set aside for a down payment and repairs? If you can answer all of these questions affirmatively, you’re ready to buy.

But the pandemic has exacerbated housing shortages, leading to bidding wars and higher prices. These trends mean it can be a frustrating market for buyers.

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Today’s Featured Lenders, 8 November 2022

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