Today’s National Mortgage Rates, September 30, 2022 | Rates Moved Upward

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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 – around 3% or lower for a 30-year fixed rate – averages have roughly doubled since January. Inflation is a big reason why, and rates have continued to climb as the Federal Reserve has ratcheted up 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. Unfortunately those higher rates also mean monthly payments are likely to be significantly higher. Be sure to run today’s mortgage rates through a calculator and give yourself plenty of breathing room, as rates are changing quickly.

Let’s look at today’s rates and what they mean for borrowers.

Looking at today’s mortgage rates a number of notable rates increased. The averages for both 30-year fixed and 15-year fixed mortgages both saw increases. For variable rates, the 5/1 adjustable-rate mortgage (ARM) also trended upward.

The average mortgage rates are as follows:

Mortgage Rate Forecast: What Is Driving Mortgage Rate Change?

Mortgage rates have been pushed up primarily by the highest inflation in four decades. The consumer price index showed prices up 8.3% year-over-year in August, compared to 8.5% in July. Inflation has remained higher than expected.

In response to that high inflation, the Federal Reserve has increased its benchmark short-term interest rate, known as the federal funds rate. In September it raised the federal funds rate by 75 basis points for the third time in a row. While the Fed’s changes don’t directly drive increases in mortgage rates, they have some correlation because they both respond to inflation.

“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,” says Odeta Kushi, deputy chief economist at First American Financial Corporation.

What do Today’s Mortgage Rates Mean for Your Home Buying Plans?

This year’s dramatic surge in mortgage rates has complicated the math for homebuyers. Mortgage costs are significantly higher than they were just a few months ago, oftentimes wiping out any savings that would be seen from lower home prices.

Home prices remain near their all-time highs and are still higher than they were at the same point last year, despite some drops from their peaks earlier in the summer.

The most important thing is to do the math and calculate your expected monthly payment, and see if that fits your budget. The softening demand for homes could also mean you’re more likely to be able to find a deal or get a seller to agree to concessions, such as paying mortgage points to get you a lower interest rate.

“It’s always a good time to buy a home, if that’s what is important to you. It’s just about doing your research and making good informed decisions,” says Eileen Derks, head of mortgage at Laurel Road, an online lender owned by KeyBank that specializes in serving health care professionals.

What to Know About Loans Fees

Anytime you take out a home loan, your decision should factor in the loan’s closing costs. The closing costs can be anywhere from 3-6% of the loan amount, including origination fees, prepaid interest, and property taxes.. Accepting a higher interest rate, in exchange for lender credits can assist you in reducing your out-of-pocket costs. The strategy can save you money in the short-term, so it’s worth considering if you plan to sell or refinance your home within five to eight years.

Today’s Mortgage Refinance Rates

Refinancing became a bit more expensive today as 30-year fixed and 15-year fixed refinance mortgages saw their average rates go higher. Shorter term, 10-year fixed-rate refinance mortgages also inched up.

The refinance averages for 30-year, 15-year, and 10-year loans are:

Compare nationwide home loan rates from various lenders .

30-Year Mortgage Rates

The average 30-year fixed mortgage interest rate is 6.83%, which is an increase of 28 basis points from last week.

15-Year Mortgage Interest Rates

The median rate for a 15-year fixed mortgage is 6.00%, which is an increase of 27 basis points from seven days ago.

A 15-year, fixed-rate mortgage’s monthly payment is larger and will take up a bigger chunk of your monthly budget than a 30-year mortgage would. However, 15-year loans have some considerable benefits: You’ll save thousands of dollars in interest and pay off your loan much sooner.

5/1 ARM Rates

A 5/1 ARM has an average rate of 5.22%, which is a rise of 35 basis points compared to last week.

An adjustable-rate mortgage is ideal for individuals who will sell or refinance before the rate changes. If that’s not the case, their interest rates could end up being noticeably higher after a rate adjusts.

For the first five years, a 5/1 ARM will typically have a lower interest rate compared to a 30-year fixed mortgage. Keep in mind that your payment could end up being hundreds of dollars higher after a rate adjustment, depending on the terms of your loan.

How We Calculate Our Mortgage Rates

We use Bankrate’s daily mortgage rate data for our mortgage rate trends. These overnight rates are based on a specific personal financial profile, which only includes loans for primary residences where the borrower has a FICO score of 740+. Bankrate is part of the same parent company as NextAdvisor.

The average rates listed below and based on the Bankrate mortgage rate survey:

Updated on September 30, 2022.

Pro Tip

Use our mortgage calculator to see how your mortgage payment changes based on causes like your interest rate, homeowners insurance, and property taxes.

Mortgage Rate Frequently Asked Questions (FAQ):

How Do I Get the Best Mortgage Rate?

Your credit score, and loan-to-value ratio (LTV), and are the most important factors lenders use to calculate your mortgage rate.

To get the lowest interest rate, you’ll need a credit score somewhere between 700-800. Having a credit score above 800 is nice, but will likely have a minimal impact on your rate.

Lenders provide the biggest mortgage rate discounts to home buyers that are deemed less risky. One surefire way to show you’re a less risky borrower is to bring a bigger down payment to the closing table. A down payment of 20% or more will save you money in two ways: with a more favorable mortgage rate, and you’ll be able to avoid paying for private mortgage insurance (PMI).

When Should I Lock in My Mortgage Rate?

It’s impossible to know what direction mortgage rates will go from day to day. That’s why a mortgage rate lock is such a useful tool because it protects you if rates go up. And with interest rates being relatively low right now, you should lock in your rate as soon as you can.

When you lock in your rate, ask your lender how long the lock will last. A rate lock can be good for anywhere from 30 to 60 days, which typically will give you enough time to close before the lock expires. If you want to extend the rate lock, ask about fees as many lenders charge a fee for extending a rate lock.