Home News Mortgage rates rise as eyes turn to next Fed rate hike

Mortgage rates rise as eyes turn to next Fed rate hike

by admin
0 comment

Mortgage rates are rising again as the housing market prepares the Fed to raise interest rates. (((iStock).

Mortgage rates rose again this week as markets are preparing for another rate hike after a Federal Reserve meeting later this month.

According to Freddie Mac, the average interest rate on 30-year fixed-rate mortgages for the week ending July 21, 2022 has risen to 5.54%. Primary Mortgage Market Research.. This has risen since last week, when the average 30-year mortgage rate averaged 5.51%, and last year, when it averaged 2.78%.

According to Freddie Mac, the average mortgage rate in 2015 rose to 4.75%.This is up from 4.67% last week From 2.12% last year. Five-year Treasury-indexed hybrid floating rate mortgages (ARMs) fell slightly from 4.35% last week to 4.31%, up from 2.49% last year.

George Ratiu, Economic Research Manager at Realtor.com, said: Said in a statement.. “The big question is whether 75 basis points is enough, or whether the Fed should push for a 100 basis point increase.”

If you’re interested in getting a mortgage right away before it goes up, consider refinancing your mortgage to reduce your monthly payments and save money for the entire duration of your loan. Visit Credible to find personalized interest rates Without affecting your credit score.

Inflation hit a 40-year high in June — what does this mean for interest rates?

More rate hikes as inflation rises

inflation Rapid increase in June This year, it set a new record for the fifth time and set a record high for the first time in 40 years.

Inflation is still high, so the Fed is likely to continue raising interest rates in an attempt to lower interest rates, and mortgage rates could rise in the coming weeks. Recent Fed Announce the minutes Starting in June, the Federal Open Market Committee (FOMC) meeting next week indicates that a further 75 basis point rate hike could occur.

“The market is [Federal Reserve’s] In light of the central bank’s overlooked signal about inflation last year, he said with a grain of salt, “Latiu said. It was resolved earlier this year, only admitting that aggressive policy measures are needed to correct the price hike. “

There is now growing concern that even the Fed’s interest rate setting is not enough to tamper with inflation.

If inflation is hurting you, consider refinancing your mortgage to reduce your monthly payments. Visit Credible to compare multiple mortgage lenders at once And choose the one with the best interest rate for you.

Bank of America says it expects a “mild recession” this year

Home buyers are less enthusiastic about entering the home market

As consumers become more cautious about the housing market and the economy as a whole, they are beginning to hurt housing demand.

“The housing market remains sluggish as mortgage rates have risen for the second straight week,” said Sam Carter, chief economist at Freddie Mac. “Consumer concerns about rising interest rates, inflation and a potential recession are manifested in softening demand. As a result of these factors, we expect house price increases to ease significantly.”

Today’s average mortgage rate for 30-year mortgages is $ 2,100 in median home monthly mortgage payments, an increase of 59% over last year. Rising house prices And interest rates.

“Not surprisingly, existing home sales fell for the fifth straight month as demand for mortgages fell to their lowest level in 22 years and buyers suspended home purchases this week,” said Latiu. ..

If you’re buying a home in today’s market or considering refinancing your current mortgage, use the online marketplace to compare multiple lenders and compare shops to find the best rate. Please consider. Contact Credible to talk to a mortgage expert Then ask them to answer all your questions.

I have a financial question, but don’t know who to ask? Send an email to a trusted money expert at [email protected] And your question may be answered by Credible in our Money Expert column.

You may also like