The average rate on a 30-year fixed mortgage is 3.71%, up from 3.61% yesterday. The average 15-year fixed rate is 3.12%, and the 5/1 adjustable rate mortgage (ARM) is 3.19%.
The increased rates may be attributed to rising inflation expectations, as investors seek out more returns in order to combat the detrimental effects of inflation on their investments. Also, the job market continues to improve, which can lead to increased demand for housing and thus, higher mortgage rates.
The current environment is advantageous for borrowers looking to refinance their home mortgages. If they haven’t refinanced already, now may be a great time. Mortgage rates are still very low, making it an excellent time to lock in a lower rate and potentially save thousands of dollars in the long run.
It is important to note that even small changes in interest rates can have a big impact on how much you will pay for a home loan. For example, if you are considering a $400,000 loan with an interest rate of 3.75%, the difference between a 3.70% rate and a 3.75% rate is more than $7,000 over the life of the loan.
When it comes time to decide whether to refinance or not, it’s important to do your research and make sure the refinancing deal makes sense. Taking into account all of the fees and costs associated with the loan, determine if the new loan will save you money in the long run.
Overall, mortgage and refinance rates are currently trending higher, with the average 30-year fixed mortgage rate at 3.71% and the average 15-year fixed rate at 3.12%. This presents a great opportunity for borrowers to lock in a lower rate and potentially save thousands of dollars in the long run. In order to ensure that the new loan will save you money in the long run, it’s important to look at all of the associated fees and costs and to compare them to the current rate. Ultimately, a decision to refinance should depend on one’s individual financial situation.
On August 11, 2022, the national trend in mortgage and refinance rates was towards an increase, with the average 30-year fixed mortgage rate hovering at 3.71% and the 15-year fixed rate at 3.12%. Reasons for this shift include higher inflation expectations and an improving job market, driving demand for housing and thus, higher mortgage rates. There is potential to save thousands of dollars by taking advantage of these low rates, particularly for those looking to refinance their mortgages. However, this should depend on individual financial situations. Looking at all of the associated fees and costs, and comparing them to the current rate will ensure that any decision to refinance will result in savings in the long run.
This article was contributed on Oct 21, 2023