About That Spike In Your Mortgage Rates
Mortgage Rates Higher Than The Freddie Mac Report
According to Freddie Mac, 30-year fixed-rate mortgage rates rose again this week to hit 4.22 percent on average nationwide.
But, that survey stopped collected data three days ago and, in the time since, rates have jumped even more.
It’s a tough spot for would-be buyers who’ve spent the last four weeks shopping for a home without putting something under contract.
Rates are up 0.375 percentage points since the start of the year and, now, those hikes have pretty dramatically changed the answer to the question that most home buyers ask and that’s: “How much home can I afford?”
The typical home buyer now pays $50 more each month to own a home, and that’s affecting home affordability.
It’s a good time to revisit your pre-approval and your home loan with your lender.
Today’s Mortgage Rates
Mortgage rates continue their recent climbs.
Conforming thirty-year rates are near 4.375%, FHA mortgage rates are a little lower at 4.25 percent, and VA and USDA mortgage rates are near 4.125 percent nationwide.
Now, these rates assume points and a full set of closing costs.
If you go with your lender’s zero-closing cost option, your rates will be a bit higher. You might also get different rates based on where you live, your type of home, and how much you’re borrowing overall.
Talk to two or more lenders before settling on a rate and make sure to shop around.
Fed Votes To Hold Fed Funds Rate At 1.50 Percent
The Federal Reserve voted earlier this week to hold the Fed Funds Rate in its current range near 1.50%.
This month’s meeting was the Fed’s first of eight scheduled meetings for the year, and between now and 2019, the group is expected to raise its benchmark rate three more times.
But, just because the Fed expects to raise its raises, that doesn’t mean that mortgage rates will rise, too.
The Fed doesn’t set consumer mortgage rates. It sets the Fed Funds Rate, which is the rate at which banks lend money to each other overnight.
What mortgage rates will do this year is anyone’s guess but, for now, they’re trending higher and pushing to highs not seen in 3 years.
To get a live look at today’s mortgage rates and see how home much you can afford, click the button below to connect direct with a member of our team.
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