Today, mortgage rates increased, with the average 30-year fixed rate at 6.10% and the 15-year fixed rate at 5.55%. This rise can be linked to the latest PCE data, suggesting the Federal Reserve won’t be aggressive with rate cuts. Rates are expected to stay relatively flat for a few months.
Current mortgage rates are: 30-year fixed at 6.10%, 20-year fixed at 5.97%, 15-year fixed at 5.55%, 5/1 ARM at 6.45%, 7/1 ARM at 6.38%, 30-year VA at 5.56%, 15-year VA at 5.22%, and 5/1 VA at 5.40%. These are national averages rounded to the nearest hundredth.
Today’s mortgage refinance rates are slightly higher than purchase rates, with the 30-year fixed at 6.15%, 20-year fixed at 6.09%, 15-year fixed at 5.63%, 5/1 ARM at 6.43%, 7/1 ARM at 6.69%, 30-year VA at 5.62%, 15-year VA at 5.47%, and 5/1 VA at 5.37%. These are national averages rounded to the nearest hundredth.
Considering a 30-year fixed mortgage? Payments are lower and predictable. But, the higher interest rate in both short and long term may be a disadvantage. A 30-year term offers low monthly payments, but you’ll pay more in interest over the loan life.
Opting for a 15-year fixed mortgage? Monthly payments are predictable, interest rates are lower, and you’ll pay off your mortgage sooner. However, payments will be higher compared to a 30-year term.
Adjustable-rate mortgages (ARMs) offer lower initial rates compared to fixed rates, resulting in lower monthly payments. But, rates can change after the intro period, leading to unpredictable payments in the future.
Now is a good time to buy a house, as home prices are stable and mortgage rates are overall trending down. Timing the market is challenging, so buy when it aligns with your needs. Mortgage rates vary by location, and economists don’t anticipate significant drops soon.
To secure a low mortgage refinance rate, focus on improving credit, reducing debt-to-income ratio, and considering a shorter term for a lower rate. Refinancing can lead to savings in interest over time, despite higher monthly payments.
Read more at Yahoo Finance: Inflation data pushes rates higher