Home News Today’s Mortgage, Refinance Rates: August 14, 2022

Today’s Mortgage, Refinance Rates: August 14, 2022

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Mortgage rates were relatively stable last week, albeit with some volatility. However, it is still possible for interest rates to fluctuate even more as investors try to anticipate the likelihood of an upcoming recession.

The Federal Reserve has been raising the federal funds rate to cool the economy, but some fear it can’t do so without inadvertently triggering a recession. The economy remains strong. The unemployment rate in July is down to 3.5% — Return to pre-pandemic levels.

Even with prices no longer skyrocketing, home shoppers are still navigating a difficult market. Mortgages remain significantly higher than they were in 2021, and home prices are rising.

“Prospective borrowers should consult with knowledgeable mortgage lenders to better understand how current interest rates and product options will affect their total purchasing power and long-term financial goals.” TD Bank“There are many factors to consider, including current and projected capacity, down payment, loan options and ultimately monthly payments.”

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please use us free mortgage calculator See how today’s mortgage interest rates affect your monthly and long-term payments.

mortgage calculator

$1,161
Estimated monthly payment

  • pay twenty five% A higher down payment will save you $8,916.08 About interest
  • cut interest rates 1% will save you $51,562.03
  • pay extra $500 monthly loan period 146 Moon

Plug in different terms and interest rates to see how your monthly payments change.

Will mortgage interest rates go up?

Mortgage rates started rising from historically low levels in late 2021 and have risen significantly since the beginning of 2022. Interest rates have been relatively volatile lately.

in the last 12 months, Consumer price index rose 8.5%The Federal Reserve (Fed) is working to keep inflation under control and plans to raise the Federal Fund’s target rate three more times this year, following March, May, June and July.

Although not directly tied to the Federal Funds Rate, mortgage rates can be pushed higher as a result of Fed rate hikes and investor expectations of the impact of those rate hikes on the economy.

Inflation continues to rise, but is starting to slow. This bodes well for mortgage rates and the economy as a whole.

What do high interest rates mean for the housing market?

Higher mortgage rates reduce the purchasing power of homebuyers as much of their projected housing budget must be spent on interest payments. If interest rates are high enough, buyers will be able to pull prices away from the market, dampening demand and putting downward pressure on house price growth.

But that doesn’t mean house prices will go down. expected to rise This year it’s up even more, but at a slower pace than we’ve seen in the last two years.

What is a good home loan interest rate?

It can be difficult to know if a lender is offering a good rate, so it is very important to get pre-approval from multiple mortgage lenders and compare each offer. At least he applies to two or he three lenders for pre-approval.

Rates aren’t the only thing that matters. Be sure to compare both the monthly costs and the initial costs, including the lender’s fees.

Mortgage interest rates are greatly influenced by economic factors beyond your control, but there are a few things you can do to get a good interest rate.

  • Consider fixed rate and adjustable rate. With a variable rate mortgage, you may be able to take advantage of a lower trial rate if you plan to move before the trial period ends.But if you buy forever home Because you don’t risk the rate going up later. Take a look at the interest rates offered by lenders and consider your options.
  • Look at your finances. The better your financial situation, the lower your mortgage interest rate should be.Look for ways to boost you credit score or your Debt-to-income ratio, If necessary.higher savings down payment is also helpful.
  • Choose the right lender. Each lender charges a different mortgage rate. choose the right one Your financial situation will help you get good rates.

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