Mortgage and Refinancing Rates Today: August 6, 2022

The average 30-year fixed-rate mortgage rate is now more than half a percentage point lower than it was two weeks ago. Prices have been volatile in recent weeks, but have generally trended lower as markets prepare for a possible recession.

The Federal Reserve has been raising the federal funds rate in an attempt to tame inflation, and many now fear that it won’t be able to do so without slowing the economy too much.

Some have even speculated that we are already in a recession, pointing to the fact that GDP has fallen two consecutive quarters. But on Friday, the Bureau of Labor Statistics announced that the US added 528,000 jobs in July, much higher than many economists had expected.

Mortgage rates may remain volatile as the results of the Fed’s rate hike continue to emerge.

Current Mortgage Rates

Current refinancing rates

Mortgage Calculator

Use our free mortgage calculator to see how today’s mortgage rates will affect your monthly payments. By connecting different rates and lengths, you will also understand how much you will pay over the entire term of the mortgage.

Mortgage Calculator

Estimated monthly payment

  • pay 25% It will give you a higher down payment USD 8,916.08 on interest charges
  • Reduce the interest rate by 1% will save you $51.562.03
  • Pay extra 500 dollars Each month would reduce the term of the loan by 146 months

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

Fixed mortgage rates for 30 years

The current average fixed-mortgage rate for 30 years is 4.99%, according to Freddie Mac. This is down from last week when it was at 5.3%, and for the second week in a row that rate has fallen.

A 30-year mortgage is the most common type of home loan. With this type of mortgage, you will pay back what you borrowed over 30 years, and your interest rate will not change for the life of the loan.

The extended 30-year term allows you to spread out your payments over an extended 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 periods or adjustable rates.

Fixed mortgage rates for 15 years

The average 15-year fixed rate mortgage is 4.26%, down from the previous week, according to Freddie Mac data. This is the second week in a row that this rate has decreased.

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, then a 15-year fixed rate mortgage might be right for you. Since these terms are shorter and have lower rates than 30-year fixed rate mortgages, you can potentially save tens of thousands of dollars in interest. However, you will get a higher monthly payment than you get in the long run.

5/1 adjustable mortgage rates

The 5/1 adjustable mortgage rate is 4.25%, down slightly from the previous week. This is the third week in a row that this rate has decreased.

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

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

Are Mortgage Rates Rising?

Mortgage rates have started to rise from historical lows in the second half of 2021 and have increased significantly so far in 2022. More recently, rates have been relatively volatile.

In the past 12 months, the Consumer Price Index has increased by 9.1%. The Fed is working to control inflation, and plans to increase the federal funds target rate three more times this year, after increases in March, May, June and July.

Although not directly related to the federal funds rate, mortgage rates are sometimes raised as a result of higher Fed rates and investor expectations about how those hikes will affect the economy. If inflation remains high, mortgage rates may remain at their current levels or even trend upward. But as the likelihood of a recession increases, mortgage rates can fall.

How do I find personal 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 is not fixed, but it can give you an idea of ​​what you will be paying.

If you are ready to start shopping for homes, you can apply for pre-approval from a lender. The lender makes a strong credit pull and looks into the details of your money to secure the mortgage rate.

How do I compare mortgage rates between lenders?

You can apply for pre-qualification with many lenders. The lender takes an overview of your money and gives you an estimate of the rate you will pay.

If you’re away in the home buying process, you have the option of applying for pre-approval with several lenders, not just one company. By receiving messages from more than one lender, you can compare personal rates.

Applying for pre-approval requires a difficult credit withdrawal. Try to apply with multiple lenders in a few weeks, because pooling all of your stable credit withdrawn in the same fraction of the time will hurt your credit score less.

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