By October, McBride anticipates that the 30-year fixed-rate mortgage will average 6.5 percent to 6.8 percent, and the 15-year fixed mortgage will average 5.5 percent to 5.75 percent.
Mortgage rates
rose in the week ending October. The Federal Reserve began raising its benchmark interest rate in March and then, in June, it raised the rate by 75 basis points, the biggest increase since 1994, only to repeat that step again in July and September. Since March, the Federal Reserve has raised rates five times, raising its benchmark rate from nearly zero to between 3 and 3.25 percent.If you want to buy a home but have been experiencing a bit of shock when it comes to mortgage payments, you may have the opportunity to get an affordable mortgage next year if the predictions of these real estate experts are accurate. It's not yet clear when or how the Federal Reserve's rate hikes will outweigh inflation in other parts of the economy. Getting a home loan with a slightly lower rate could save you hundreds or thousands of dollars over the life of the mortgage. Global events, such as the COVID-19 pandemic and Russia's conflict with Ukraine, affect mortgage interest rates.
It's more important than ever to check your rates with multiple lenders to ensure the best possible rate while minimizing fees. Those measures have already had significant consequences for the housing market, and the surge in mortgage rates has raised broader concerns that the Federal Reserve is holding back the economy too hard. The Fed is “effectively saying that it will have to fight harder and that rates will have to rise higher than they originally thought earlier this year to end the inflation dragon,” said Melissa Cohn, regional vice president of William Raveis Mortgage. You'll be able to see a true side-by-side comparison of your potential monthly mortgage payment and how closing costs, lender fees and interest rates are reflected over time with each loan offer.
If you're buying a home, the right time to set a rate is after you've secured a purchase agreement and looked for your best mortgage offer. Rising mortgage rates are slowing down the market, even in places where it was red hot during the pandemic. When interest rates rise, reflecting changes in the economy and financial markets, so do mortgage rates and vice versa. Mortgage interest rates also depend on lenders looking at your personal finances and other personal factors, such as the amount you plan to borrow, the repayment period, employment status and income, the debt-to-income ratio, and your credit rating.
In today's environment, adjustable-rate mortgages may be more affordable than fixed-rate mortgages.
