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Mortgage rates have risen over a full percentage point in the span of just six weeks, and they’re now slated to surpass the levels many forecasts had expected them to reach.
In its latest housing forecast released in August, Fannie Mae predicted that 30-year fixed mortgage rates would reach an average of 5.1% in Q3 of 2022 — but with just two weeks left in the quarter, this rate is already at a quarterly average of 5.46%, according to Freddie Mac data. Fannie Mae also forecasted an average rate of 4.8% in the fourth quarter of this year, but with rates already up past 6% and showing no signs of easing, they’ll likely miss this prediction as well.
Freddie Mac’s forecast of 5.5% for Q3 is more in line with current expectations, but rates will likely exceed its Q4 forecast of 5.4%. The Mortgage Bankers Association forecasted a Q3 average of 5.3% and a Q4 average of 5.2%.
Prior to this most recent surge, mortgage rates had been falling, and reached a low of 4.99% in early August. But as economic data has continued to show a strong labor market and inflation still running hotter than expected, the Federal Reserve has taken a more aggressive stance, promising to raise the federal funds rate until inflation shows sustained signs of slowing. This caused mortgage rates to spike.
Mortgage rates today
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Mortgage refinance rates today
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Mortgage calculator
Use our free mortgage calculator to see how today’s interest rates will affect your monthly payments.
Mortgage Calculator
$1,161
Your estimated monthly payment
- Paying a 25% higher down payment would save you $8,916.08 on interest charges
- Lowering the interest rate by 1% would save you $51,562.03
- Paying an additional $500 each month would reduce the loan length by 146 months
By clicking on “More details,” you’ll also see how much you’ll pay over the entire length of your mortgage, including how much goes toward the principal vs. interest.
30-year fixed mortgage rates
The current average 30-year fixed mortgage rate is 6.02%, according to Freddie Mac. This is the highest this rate has been since 2008, and the fourth week in a row it’s increased.
The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you’ll pay back what you borrowed over 30 years, and your interest rate won’t change for the life of the loan.
The lengthy 30-year term allows you to spread out your payments over a long period of time,…
Read More:Today’s Mortgage, Refinance Rates: Sept. 18, 2022
2022-09-18 10:04:58