Current mortgage interest rates as of November 4, 2022: rising rates

Some closely watched mortgage rates have increased over the past weeka. Average 15-year fixed and 30-year fixed mortgage rates both increased. For variable rates, the 5/1 variable rate mortgage also increased.

Mortgage rates have been rising steadily since the start of 2022, following a series of interest rate hike by the Federal Reserve. Interest rates are dynamic and unpredictable – at least on a daily or weekly basis – and they react to a wide variety of economic factors. But the Fed’s actions, designed to mitigate the high inflation ratehave an undeniable impact on mortgage rates.

If you’re looking to buy a home, trying to time the market may not work in your favor. If inflation continues to rise and rates continue to rise, this will likely translate into higher interest rates and higher monthly mortgage payments. As such, you may have a better chance of getting a lower mortgage interest rate sooner rather than later. No matter when you decide to shop for a home, it’s always a good idea to research multiple lenders to compare rates and fees to find the best mortgage for your specific situation.

30 Year Fixed Rate Mortgages

The average 30-year fixed mortgage rate is 7.35%, up 25 basis points from a week ago. (One basis point equals 0.01%.) The most common loan term is a 30-year fixed mortgage. A 30-year fixed rate mortgage will generally have a higher interest rate than a 15-year fixed rate mortgage, but also a lower monthly payment. You won’t be able to pay off your home as quickly and you’ll pay more interest over time, but a 30-year fixed rate mortgage is a good option if you’re looking to minimize your monthly payment.

15-year fixed rate mortgages

The average 15-year fixed mortgage rate is 6.51%, up 13 basis points from a week ago. You will definitely have a higher monthly payment with a 15-year fixed mortgage compared to a 30-year fixed mortgage, even if the interest rate and loan amount are the same. But a 15-year loan will generally be the best deal, if you can afford the monthly payments. You will generally get a lower interest rate and pay less interest in total because you are paying off your mortgage much faster.

5/1 Adjustable Rate Mortgages

A 5/1 ARM has an average rate of 5.58%, up 5 basis points from last week. For the first five years, you’ll typically get a lower interest rate with a 5/1 variable rate mortgage compared to a 30-year fixed mortgage. But market changes could cause your interest rate to increase after this period, as stated in the terms of your loan. If you plan to sell or refinance your home before the rate changes, an ARM might be right for you. Otherwise, changes in the market mean that your interest rate could be much higher once the rate is adjusted.

Mortgage Rate Trends

Although mortgage rates were historically low at the start of 2022, they have been rising steadily ever since. The Federal Reserve recently raised interest rates an additional 0.75 percentage points in an effort to curb record inflation. The Fed has raised rates a total of six times this year, but inflation remains high. Generally, when inflation is low, mortgage rates tend to be lower. When inflation is high, rates tend to be higher.

Although the Fed does not set mortgage rates directly, central bank policy actions influence how much you pay to fund your home loan. If you’re looking to buy a home in 2022, keep in mind that the Fed has signaled it will continue to raise rates and mortgage rates may rise as the year progresses. Whether rates follow their upward projection or begin to stabilize depends on whether inflation actually slows.

We use data collected by Bankrate, which is owned by the same parent company as CNET, to track these daily rates. This table summarizes the average rates offered by lenders in the United States:

Current Average Mortgage Interest Rates

Type of loan Interest rate A week ago To change
30-year fixed rate 7.35% 7.10% +0.25
Fixed rate over 15 years 6.51% 6.38% +0.13
30-year jumbo mortgage rate 7.35% 7.07% +0.28
30-year mortgage refinance rate 7.35% 7.10% +0.25

Updated November 4, 2022.

How to Shop for the Best Mortgage Rate

When you’re ready to apply for a loan, you can contact a local mortgage broker or search online. When researching mortgage rates, consider your current goals and finances.

Factors that affect the interest rate you might get on your mortgage include: your credit score, your down payment, your loan-to-value ratio, and your debt-to-income ratio. Having a higher credit score, higher down payment, low DTI, low LTV, or any combination of these factors can help you get a lower interest rate.

Along with the mortgage interest rate, additional costs including closing costs, fees, discount points, and taxes may also factor into the cost of your home. You should speak with a variety of lenders – for example, local and national banks, credit unions, and online lenders – and a comparison store to find the best mortgage for you.

What is a good loan term?

When choosing a mortgage, it is important to consider the length of the loan or the payment schedule. The most commonly offered mortgage terms are 15 and 30 years, although you can also find 10, 20 and 40 year mortgages. Mortgages are further divided into fixed rate and variable rate mortgages. Interest rates on a fixed rate mortgage are fixed for the term of the loan. For adjustable rate home loans, the interest rates are stable for a number of years (usually five, seven or 10 years), then the rate changes annually based on the market rate.

One thing to consider when choosing between a fixed rate mortgage and an adjustable rate mortgage is how long you plan to live in your home. For those planning on staying in a new home for the long term, fixed rate mortgages may be the best option. Fixed rate mortgages offer more stability over time compared to adjustable rate mortgages, but adjustable rate mortgages may offer lower interest rates upfront. If you don’t plan to keep your new home for more than three to ten years, an adjustable rate mortgage might get you a better deal. The best loan term depends entirely on an individual’s situation and goals, so be sure to consider what’s important to you when choosing a mortgage.

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