Mortgage Rates play a huge part when buying a home. We have enjoyed very low rates for quite some time. Even though we have experienced an increase over the past week rates are still incredibly low. Have you educated yourself on what a rate lock is or how long you can lock your interest rate in place? These are two great questions to ask your lender!
Average mortgage rates continue to hover around 3%, but they’ve slowly ticked higher. This week, the 30-year, fixed-rate mortgage averaged 3.05%.
MCLEAN, Va. – At 3.05%, this week’s average, 30-year mortgage rate rose to a level unseen in six months, according to Freddie Mac’s weekly survey.
“The 30-year fixed-rate mortgage rose to its highest point since April,” says Sam Khater, Freddie Mac’s chief economist. “As inflationary pressure builds due to the ongoing pandemic and tightening monetary policy, we expect rates to continue a modest upswing.”
Temporary inflation might have little effect on mortgage rates, but expectations for continued inflation might. In addition, some Federal Reserve policies bolster low rates, but the central bank has talked about pulling those back later in the year.
“Historically speaking, rates are still low, but many potential homebuyers are staying on the sidelines due to high home price growth,” says Khater. “Rising mortgage rates combined with growing home prices make affordability more challenging for potential homebuyers.”
Average mortgage rates for the week of Oct. 24, 2021
- The 30-year fixed-rate mortgage averaged 3.05% with an average 0.7 point for the week, up from last week’s 2.99%. A year ago, it averaged 2.81%.
- The 15-year fixed-rate mortgage averaged 2.30% with an average 0.7 point, up from last week’s 2.23%. A year ago, the 15-year FRM averaged 2.35%.
- The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.55% with an average 0.2 point, up from last week’s 2.52%. A year ago, the 5-year ARM averaged 2.90%.
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