Mortgage Rates Jump Even Higher After Fed Hike
The monthly mortgage payment on a $400,000 loan is about $2,470 compared to $1,660 a year ago, according to NAR
As a borrower, it doesn’t make much sense to try to time your rate in this market. Our best advice is to buy when you’re financially ready and can afford the home you want — regardless of current interest rates.
Remember that you’re not stuck with your mortgage rate forever. If rates drop significantly, homeowners can always refinance later on to cut costs.
The monthly mortgage payment on a $400,000 loan is about $2,470 compared to $1,660 a year ago, the National Association of REALTORS® reports. Owners may be locked into their current loans as mortgage rates rise, and the 3% rates from last year may not be back anytime soon, Nadia Evangelou, NAR’s senior economist and director of forecasting, says on the association’s blog. “While the nation is suffering from a severe housing shortage, lower mobility can make housing inventory even tighter and cause home prices to continue to escalate.”
Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 22:
- 30-year fixed-rate mortgages: averaged 6.29%, with an average 0.9 point, up from 6.02% last week. Last year at this time, 30-year rates averaged 2.88%.
- 15-year fixed-rate mortgages: averaged 5.44%, with an average 1 point, rising from last week’s 5.21% average. A year ago, 15-year rates averaged 2.15%.
- 5-year hybrid adjustable-rate mortgages: averaged 4.97%, with an average 0.4 point, rising from last week’s 4.93% average. A year ago, 5-year ARMs averaged 2.43%.
Freddie Mac reports commitment rates along with average points to better reflect the total upfront cost of obtaining a mortgage.