On Monday, Nerdwallet released the average mortgage rates in the country:
…the average interest rate on a 30-year fixed-rate mortgage climbed 14 basis points to 7.072% APR. The average rate on a 15-year fixed-rate mortgage rose 14 basis points to 6.102% APR, and the average rate on a 5-year adjustable-rate mortgage rose three basis points to 5.975% APR, according to rates provided to NerdWallet by Zillow. The 30-year fixed-rate mortgage is 17 basis points higher than one week ago and 407 basis points higher than one year ago. A basis point is one one-hundredth of one percent. Rates are expressed as an annual percentage rate, or APR.
Rates are up! Something odd, though, is that on 10/11, we reported the 30-year fixed rate mortgage was 6.943%, but at the end of the week, that rate was 6.81%. This speaks volumes about the volatility in the current market. Remember, you’re rates are locked in once you’re under contract on a property. Make sure you have excellent communication with your lender to get the best rate for you. We know that these rates are scary when you consider where we were just one year ago, but as rates go up, home prices will go down. Lastly, the chances of being able to refinance down the road are more likely with the current rates than the lower rates from last year. So if you can afford your mortgage and find your ideal home, it will all even out. The important thing is not to overextend yourself.
If you have any questions about strategizing whether to buy now or later, please feel free to reach out to our team of Real Estate Advisors. We can help you make the wisest decision for you!
Questions? Reach out to one of our advisors for a chat!
Link to full Nerdwallet article: https://www.nerdwallet.com/article/mortgages/mortgage-interest-rates-forecast