Mortgage Interest Rates Update for October 5, 2022
If you haven’t thought about mortgage rates in a while, you’re in for a surprise.
After a few years of rates near record lows of around 3% or lower for a 30-year fixed rate – on average have roughly doubled since January.
Inflation is a big reason why, and rates have continued to climb as the Federal Reserve has increased its interest rate to tame those high prices.
The good news for homebuyers is that higher mortgage rates have cooled down a piping hot housing market. Home prices have started to dip since the start of summer, and are falling faster in some communities.
Let’s look at today’s rates:
30-year mortgage rate: 6.83%
Today’s 20-year fixed mortgage rate is 6.83%
15-year fixed mortgage rates are averaging 5.99%
10-year fixed mortgage rates are averaging 6.01%
5/1 ARM rates are averaging 5.32%
So guys unfortunately Inflation is absolutely in the driver’s seat, particularly as it pertains to mortgage rates.
Until we get some sustained evidence that inflation is beginning to recede, the upward pressure on mortgage rates will remain.