Today’s Mortgage, Refinance Rates: Nov. 10, 2022

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The average 30-year fixed mortgage rate fell below 7% earlier this week and has held steady over the past few days.

Rates appear to have peaked and are likely to remain at current levels for the remainder of 2022 before starting to decline in 2023. But it all depends on the economy, and there’s a lot of uncertainty around where things are going right now.

Mortgage rates have risen sharply this year as the Federal Reserve tightens monetary policy to control inflation. If inflation shows signs that it is falling to the Fed’s 2 percent annual target rate, the central bank may ease the pace of rate hikes. But if price growth remains high, the Fed will need to be more aggressive, which means mortgage rates are likely to trend higher.

“Mortgage rates will react to other market indicators in the coming months,” said Dan Richards, executive vice president of mortgage lending at Flyhomes. “For example, if consumer prices don’t fall, or if unemployment remains low, that could indicate that the Fed needs to keep raising rates longer than originally planned, which would push mortgage rates higher.”

Current Mortgage Rates

Mortgage Type Average exchange rate today
This information is provided by Zillow.See more mortgage rates on Zillow

Current refinancing rate

Mortgage Type Average exchange rate today
This information is provided by Zillow.See more mortgage rates on Zillow

Mortgage calculator

Use our free mortgage calculator to see how today’s mortgage rates will affect your monthly payments. By plugging in different interest rates and term lengths, you’ll also get an idea of ​​how much you’ll pay over the life of your mortgage.

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Mortgage calculator

$1,161
Your estimated monthly payment

  • pay 25% A higher down payment will save you $8,916.08 Interest expense
  • lower interest rates 1% will save you $51,562.03
  • pay extra $500 The loan term will be reduced every month 146 moon

Click “More Details” for tips on how to save on your mortgage long-term.

30 Year Fixed Mortgage Rate

The average 30-year fixed mortgage rate is currently 6.95%, according to Freddie Mac. This is down from the previous week.

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

Term of up to 30 years allows you to spread your payments over a long period of time, which means you can lower your monthly payments and make them easier to manage. The trade-off is that you’ll get a higher rate than a short-term or adjustable rate.

15 Year Fixed Mortgage Rate

The average 15-year fixed mortgage rate was 6.29%, down from the previous week, according to Freddie Mac. The last time this rate exceeded 6% was in 2008.

If you want the predictability of a fixed rate, but you want to reduce your interest expense over the life of the loan, a 15-year fixed-rate mortgage may be right for you. Because of these shorter terms and lower interest rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you will get a higher monthly payment than you would pay in the long term.

5/1 Adjustable Mortgage Rate

The average 5/1 adjustable mortgage rate was 5.95%, a very small decrease from the previous week.

Adjustable-rate mortgages can be very attractive to borrowers when interest rates are higher, as these mortgages typically carry lower rates than fixed mortgages. 5/1 ARM is a 30-year mortgage. For the first five years, you will enjoy a fixed interest rate. After that, your rate will be adjusted annually. If the rate is higher when your rate is adjusted, your monthly payment will be higher than the amount you started with.

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If you’re considering an ARM, make sure you understand how much your interest rate is likely to rise with each adjustment, and how much it will eventually increase over the life of the loan.

Should I get a HELOC?pros and cons

If you want to capitalize on your home equity, a HELOC may be the best way to go right now. Unlike a cash refinance, you don’t have to get a whole new mortgage at the new rate, and you may get a better rate than a home equity loan.

But HELOCs don’t always make sense. It is important to consider the pros and cons.

HELOC Professionals

  • Only pay interest on what you borrow
  • Usually lower interest rates than other options, including home equity loans, personal loans and credit cards
  • If you have a lot of equity, you may borrow more money than a personal loan

HELOC Disadvantages

  • Rates are variable, which means your monthly payment may increase
  • Taking assets out of your home can be risky if the value of the property drops or you default on your loan
  • The minimum withdrawal amount may exceed the amount you want to borrow

Will Mortgage Rates Rise?

Mortgage rates have recovered from historic lows in the second half of 2021 and have risen sharply so far in 2022.

In the past 12 months, the consumer price index rose 8.2%. The Fed, which has struggled to rein in inflation, is expected to raise the federal funds target rate twice this year after raising the federal funds target rate at its past five meetings.

Although not directly related to the federal funds rate, mortgage rates are sometimes pushed higher by the Federal Reserve raising interest rates and investors’ expectations about how those increases will affect the economy.

Inflation remains high but has begun to slow, which bodes well for mortgage rates and the broader economy.

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How do I find personalized mortgage rates?

Some mortgage lenders allow you to customize your mortgage rate on their website by entering your down payment amount, zip code, and credit score. The resulting rate isn’t set in stone, but it gives you an idea of ​​what you’ll pay.

If you’re ready to start buying a home, you can apply for pre-approval from your lender. Lenders do rigorous credit pulls and look at your financial details to lock in mortgage rates.

How do you compare mortgage rates between lenders?

You can apply for prequalification with multiple lenders. The lender will get a general idea of ​​your financial situation and estimate the interest rate you will pay.

If you’re further along in the home buying process, you may choose to apply for pre-approval from multiple lenders, not just one company. By receiving correspondence from multiple lenders, you can compare personalized rates.

Applying for pre-approval requires a strict credit pull. Try to apply to multiple lenders within a few weeks, as pulling all your hard credit into the same time period will reduce your credit score.

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