Economic data could shift mortgage rates
Mortgage interest rates have seen a slight increase today, based on data from Zillow. The 30-year fixed mortgage rate has risen by one basis point to 6.72%, while the 15-year fixed rate has increased by seven basis points to 6.03%.
Typically, mortgage rates go up when the U.S. economy is thriving and decrease when the economy is struggling. This upcoming week, a lot of economic data will be released, particularly regarding inflation. While this data could influence home loan rates to some extent, it is not expected to cause any significant shifts.
Current mortgage rates, according to the latest Zillow data, are as follows:
– 30-year fixed: 6.72%
– 20-year fixed: 6.50%
– 15-year fixed: 6.03%
– 5/1 ARM: 7.11%
– 7/1 ARM: 7.41%
– 30-year VA: 6.29%
– 15-year VA: 5.70%
– 5/1 VA: 6.33%
For those considering mortgage refinancing, the rates are as follows:
– 30-year fixed: 6.75%
– 20-year fixed: 6.26%
– 15-year fixed: 6.06%
– 5/1 ARM: 7.51%
– 7/1 ARM: 7.33%
– 30-year VA: 6.28%
– 15-year VA: 5.88%
– 5/1 VA: 6.48%
It is important to note that these rates are national averages and are rounded to the nearest hundredth. Mortgage refinance rates tend to be slightly higher than rates for purchasing a home, although this may not always be the case.
When it comes to choosing between a 15-year and a 30-year mortgage, it’s essential to consider your short-term and long-term goals. While a 15-year mortgage may come with a lower interest rate and allow you to pay off the loan sooner, it also results in higher monthly payments compared to a 30-year term.
If you opt for a fixed-rate mortgage, your rate will remain constant throughout the loan term. On the other hand, an adjustable-rate mortgage will have a fixed rate for a set period before potentially adjusting based on various factors.
To secure the best mortgage rates, individuals are advised to focus on improving their credit score, increasing their down payment, and reducing their debt-to-income ratio. Waiting for rates to drop significantly may not be the most effective strategy at the moment.
In conclusion, mortgage rates are influenced by various economic factors, and while they may fluctuate slightly, drastic drops are not expected in the near future. It is crucial to compare rates from multiple lenders and consider the annual percentage rate (APR) when making a decision. By taking steps to strengthen your financial position, you can increase your chances of securing a favorable mortgage rate.
