Today’s Mortgage Refinance Rates: August 11, 2022 | Rates stable – Business Insider | Vette Leader

Mortgage rates have remained relatively quiet this week. Average 30-year fixed rates are hovering just over 5%, which is higher than last week but lower than July.

On Wednesday, the US Bureau of Labor Statistics released CPI data for July that showed inflation had finally started to cool.

The Federal Reserve has hiked the federal funds rate to fight inflation, and the latest CPI data is a positive sign that its efforts may be working. However, some investors worry that the Fed will not be able to cool the economy without inadvertently triggering a recession. This has caused mortgage rates to be volatile.

Fluctuations in mortgage rates can make it difficult for home shoppers to know when to freeze their rates. While it’s possible that you might end up saving money by waiting for interest rates to drop further, with so much volatility, avoid the risk of taking on a higher interest rate by locking in sooner rather than later.

“If it fits your budget and meets short-term and long-term financial goals, don’t wait,” says Steve Kaminski, head of US home mortgage lending at TD Bank. “If there is a significant movement after you’ve set an interest rate, many lenders offer a float-down option for a fee.”

Mortgage rates today

Mortgage refinancing rates today

mortgage calculator

Use our free mortgage calculator to see how today’s mortgage rates would affect your monthly payments. By entering different interest rates and terms, you will also understand how much you will pay over the life of your mortgage.

mortgage calculator

Your estimated monthly payment

  • Pay a 25% you would save yourself a higher down payment $8,916.08 on interest charges
  • interest rate reduction 1% would save you $51,562.03
  • pay surcharge $500 each month would shorten the loan term by 146 Months

Click More Details for tips on how to save money on your mortgage in the long run.

30 year fixed mortgage rates

According to Freddie Mac, the current average 30-year fixed-rate mortgage rate is 4.99%. This is down from last week when it was 5.3% and is the second week in a row that rate has fallen.

The 30-year fixed-rate mortgage is the most common form of home loan. With this type of mortgage, you pay back what you borrowed over 30 years, and your interest rate does not change over the life of the loan.

The long term of 30 years allows you to spread your payments over a long period of time, meaning you can keep your monthly payments lower and more manageable. The trade-off is that you have a higher rate than with shorter terms or adjustable rates.

15 year fixed mortgage rates

The average 15-year fixed-rate mortgage rate is 4.26%, down from the previous week, according to data from Freddie Mac. This is the second straight week that this rate has fallen.

If you want the predictability of a fixed interest rate but want to spend less interest over the life of your loan, a 15-year fixed-rate mortgage may be right for you. Because these terms are shorter and have lower interest rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you have a higher monthly rate than with a longer term.

5/1 Adjustable Mortgage Rates

The average 5/1 mortgage rate is 4.25%, down slightly from last week. This is the third consecutive week this rate has fallen.

Adjustable rate mortgages can be very attractive to borrowers when interest rates are high because interest rates on these mortgages are typically lower than interest rates on fixed-rate mortgages. A 5/1 ARM is a 30-year mortgage. You receive a fixed price for the first five years. After that, your tariff will be adjusted once a year. If the rates are higher when you adjust your rate, you’ll have a higher monthly payment than when you started.

If you’re considering an ARM, make sure you understand how much your interest rate could increase with each adjustment, and how much it could ultimately increase over the life of the loan.

Are mortgage rates rising?

Mortgage rates started rising from historic lows in the second half of 2021 and have risen significantly so far in 2022. More recently, interest rates have been relatively volatile.

In the last 12 months, the consumer price index rose by 8.5%. The Federal Reserve has been working to bring inflation under control and plans to raise the federal funds rate three more times this year after raising it in March, May, June and July.

While not directly tied to the federal funds rate, mortgage rates are sometimes pushed higher as a result of Fed rate hikes and investor expectations of how those increases will affect the economy.

Inflation remains high but has gradually slowed, which bodes well for mortgage rates and the broader economy.

How do I find personalized mortgage rates?

Some mortgage lenders allow you to adjust your mortgage rate on their websites by entering your down payment amount, zip code, and credit rating. The resulting rate isn’t set in stone, but it can give you an idea of ​​what you’ll be paying.

When you’re ready to start buying houses, you can apply for pre-approval from a lender. The lender takes out a hard loan and looks at the details of your finances to secure a mortgage rate.

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