The average rate for a 30-year fixed mortgage went down from 6.99% last week to 6.95% this week.
“This week, mortgage rates continued to drop because new data shows that the economy is slowing down to a more stable level of growth,” says Sam Khater, chief economist at Freddie Mac, a big name in the housing market.
“Overall inflation stayed the same, but shelter inflation, which looks at the costs of rent and owning a home, went up. This shows that buyers are still having trouble finding affordable homes.”
30-year contracts with Fixed Rates
The average rate for a 30-year fixed mortgage went down from 6.99% last week to 6.95% this week. The 30-year rate averaged 6.69% at this time last year.
15-year Mortgages with set Rates
The average rate for a 15-year mortgage went down from 6.29% last week to 6.17% this week. The 15-year fixed rate was an average of 6.10% at this time last year.
The cost of home insurance is necessary, but it can be high. You can lower your regular recurring costs by getting home insurance from a cheaper company.
If you want to do that, Officialhomeinsurance can help you. Their online marketplace of reviewed home insurance companies lets you quickly compare rates from the best insurance companies in the country and make sure you’re getting the best deal on your home insurance.
Inflation: The rate of inflation is 3.4% right now, down from 3.5% last month. Because of inflation, mortgage lenders often demand higher interest rates to make up for the fact that money is losing its value.
Federal funds rate: The federal funds rate is the interest rate that banks charge each other to borrow money. It is set by the central bank. Key interest rates are changed by central banks to control inflation or boost the economy. Mortgage rates can also change in response to these changes. The federal funds rate is between 5.25% and 5.50% right now.
Let’s say you want to buy a house for $500,000. You have a 10% down payment and agree to a 30-year fixed mortgage at the current average rate of 6.95%. With a mortgage estimator, you could figure out that your monthly payment, which does not include property taxes and insurance, would be $3,980.
If you want to buy a house, keep in mind that most lenders want you to keep your living costs at or below 30% of your gross income. Use this tool to find out how much house you can afford at today’s mortgage rates based on how much money you make and how much you spend.