Mortgage Rates on the Rise: What You Need to Know
As the Federal Reserve prepares to meet this week, mortgage rates are continuing to climb. According to recent data from Zillow, the 30-year fixed mortgage rate has increased by two basis points to 6.74%, while the 15-year fixed mortgage rate has risen by five basis points to 6.03%.
Understanding the Impact of the Federal Reserve
The Federal Reserve’s decisions on the federal funds rate can have a significant impact on mortgage rates. Although it’s unlikely that the fed funds rate will change at this month’s meeting, any comments made by the Fed about the outlook for the rest of the year could cause mortgage rates to fluctuate.
Current Mortgage Rates
Here are the current mortgage rates, based on the latest Zillow data:
- 30-year fixed: 6.74%
- 20-year fixed: 6.49%
- 15-year fixed: 6.03%
- 5/1 ARM: 6.69%
- 7/1 ARM: 6.74%
- 30-year VA: 6.17%
- 15-year VA: 5.66%
- 5/1 VA: 6.07%
- 30-year FHA: 6.29%
Refinancing Options
If you’re considering refinancing your mortgage, here are the current refinance rates:
- 30-year fixed: 6.75%
- 20-year fixed: 6.45%
- 15-year fixed: 6.08%
- 5/1 ARM: 6.68%
- 7/1 ARM: 6.64%
- 30-year VA: 6.16%
- 15-year VA: 5.89%
- 5/1 VA: 6.08%
Choosing the Right Mortgage Term
When deciding on a mortgage term, it’s essential to consider your financial situation and goals. A 30-year mortgage may offer lower monthly payments, but you’ll pay more in interest over the life of the loan. A 15-year mortgage, on the other hand, comes with a lower interest rate, but higher monthly payments.
Adjustable-Rate Mortgages
Adjustable-rate mortgages (ARMs) can offer lower rates than fixed-rate mortgages, but they come with the risk of rate increases over time. If you’re considering an ARM, make sure you understand the terms and risks involved.
Getting the Best Mortgage Rate
To secure the best mortgage rate, it’s crucial to shop around and compare lenders. You can also improve your chances of getting a lower rate by saving for a larger down payment, improving your credit score, and reducing your debt-to-income ratio.
The Impact of Inflation
Inflation can have a significant impact on mortgage rates. By keeping an eye on inflation rates, you can better prepare for changes in interest rates and make informed decisions about your mortgage.
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