Mortgage and Refinancing Rates Today: September 13, 2022

All eyes are on the Federal Reserve as it prepares to raise interest rates by 75 basis points at its meeting next week.

Mortgage rates began to rise in late August as members of the Federal Open Market Committee – the committee that sets the Federal Reserve’s monetary policy – indicated they would continue to act aggressively until inflation showed continued signs of slowing to the 2% annual target rate.

“While low inflation readings for July are welcome, the one-month improvement is much less than what the committee will need to see before we can be confident of lower inflation,” Fed Chair Jerome Powell said in a statement. Speech on August 26.

Mortgage rates have soared this year as the Federal Reserve tightened monetary policy to tackle out-of-control price growth. As investors anticipate more significant hikes, mortgage rates are likely to remain at their current levels. When the economy starts to slow, the Fed will eventually ease up on raising interest rates, and mortgage rates may start to calm down as well.

But for now, homebuyers should expect rates to remain high.

“Restoring price stability will likely require maintaining a restrained political position for some time,” Powell said. “The historical record strongly cautions against premature mitigation.”

Today’s Mortgage Rates

Mortgage type Today’s average price
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Mortgage rates on Zillow

Today’s Refinance Rates

Mortgage type Today’s average price
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Mortgage rates on Zillow

Mortgage Calculator

use Free Mortgage Calculator Find out how today’s mortgage rates will affect your monthly and long-term payments.

Mortgage Calculator

$1161
Estimated monthly payment

  • pay 25% It will give you a higher down payment USD 8,916.08 on interest charges
  • Reduce the interest rate by 1% will save you $51.562.03
  • Pay extra 500 dollars Each month would reduce the term of the loan by 146 months

By plugging in different time periods and interest rates, you’ll see how your monthly payment can change.

Are Mortgage Rates Rising?

Mortgage rates have started to rise from historical lows in the second half of 2021 and have increased significantly so far in 2022. More recently, rates have been relatively volatile.

In the last 12 months, The consumer price index rose 8.5%.. The Fed has been working to control inflation, and plans to increase the federal funds target rate three more times this year, after increases in March, May, June and July.

Although not directly related to the federal funds rate, mortgage rates are sometimes raised as a result of higher Fed rates and investor expectations about how those hikes will affect the economy.

Inflation is still high, but it’s starting to slow, which is a good indicator of mortgage rates and the broader economy.

What do high rates mean for the housing market?

When mortgage rates rise, the purchasing power of home shoppers declines, as a greater portion of the projected housing budget must go to paying interest. If prices rise enough, buyers can exit the market altogether, which cools demand and puts downward pressure on home price growth.

However, this does not mean that housing prices will fall – in fact, they are It is expected to rise More this year, at a slower pace than we’ve seen in the past two years.

What is a good mortgage rate?

It can be difficult to know if a lender is offering you a good rate, which is why it is so important to get pre-approved with several mortgage lenders and to compare each offer. Apply for pre-approval with at least two or three lenders.

Your rate is not the only thing that matters. Be sure to compare each of your monthly costs as well as the initial costs, including any lender fees.

Although mortgage rates are heavily influenced by economic factors beyond your control, there are a few things you can do to help ensure that you get a good rate:

  • Consider fixed rates versus adjustable rates. You may be able to get a lower introductory rate with an adjustable mortgage, which can be good if you plan to move before the introductory period is over. But fixed price may be better if you Buy a forever home Because you won’t risk the price going up later. Look at the rates offered by your lender and weigh your options.
  • Look at your money. The stronger your financial position, the lower your mortgage rate. Find ways to boost your Balance level or lower your Debt to Income Ratio, if necessary. saving up push down Also helps.
  • Choose the right lender. Each lender charges different mortgage rates. choose the right Your financial situation will help you get a good price.

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