Mortgages News Today; Rates Continue to Increase

By Joeseph Merill|Published On: March 17, 2023|Categories: News|

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21st January, Friday, 2022

Despite the emergence and growth of the new variant of COVID-19, the Omicron virus, mortgage rates are continuously rising. According to Bankrate, the following are the rates for today:

30-year-old mortgage: 3.67% for home purchase and 3.65% for refinancing
15-year-old mortgage: 3.02% for home purchase and 2.98% for refinancing
5/1 ARM: 2.78% for home purchase and 2.73% for refinancing
30-year jumbo mortgage: 3.68% for home purchase and 3.66% refinancing

What is the trendline?

30-year fixed-rate mortgage rate

Compared to last week, there has been an unprecedented rise of sixteen basis points (bps) in the 30-year mortgage term. Compared to last month, the rates are 48 basis points higher. These trends suggest that the 30-year mortgage rates are skyrocketing, and people expect economic growth in the future. Even the refinance rates follow the same trendline, suggesting a decline in loan borrowings.

15-year fixed-rate mortgage rate

The popular 15-year mortgage term has witnessed a rise of 19 basis points since last week. These mortgages are expensive and will increase the monthly payment.

5/1 ARM

Compared to last week, 5/1 ARM rates have risen by three basis points. The rates for a 5/1 ARM type are still low but are significantly higher than the last year.

30-year fixed-rate jumbo mortgage

Similar to a traditional 30-year term, the rates for a jumbo mortgage rose by seventeen basis points compared to the last week. Similarly, they are higher by 50 bps (equivalent to 0.5%) than last month.

Reasons for the Hike

The reasons cited for the horrible rise in the mortgage rates are related to the economic growth and a reduced threat for the Omicron virus. Even unemployment is declining in the US, and the inflation is staggering like never before. Furthermore, the FEDs have also reduced their control on their MBS purchase, causing a hike in mortgage rates.

All these reasons, which drive the income factor for many people, are responsible for the hike in the rates. Since the Omicron variant is less deadly and people return to their pre-COVID life, the virus doesn’t affect the mortgage rates.

Conclusion

As per the trendline, it looks like the rates will not stop rising anytime soon. Fortunately, the rates are historically lower than in previous years.

Hence, if you’re looking to get a mortgage, it may still be a good time. Reach out to us on rate checker to get quotes.

To speak to a Licensed Insurance Agent, Call Now!
1-877-218-7086

About Joeseph Merill

Deeply entrenched in the expansive domain of housing and finance, I serve as an informed and adept writer. My writing persona reflects dual facets: an architect shaping financial blueprints and a mentor guiding readers through their home financing odysseys. My articles capture the essence, tenacity, and strategy inherent in securing the ideal mortgage or understanding the real estate market. Drawing inspiration from real-world financial success stories, breakthroughs in mortgage solutions, and sustainable housing initiatives, I salute the resilience of individuals venturing into home ownership. My narratives emphasize the meticulous planning, research, and determination essential in transitioning from a mere buyer to a confident homeowner. Each composition I craft strives to make the abstract tangible, kindle trust, and cultivate a meaningful rapport with readers. As a dedicated scribe, I produce content that informs and resonates, challenging the status quo of financial literature. Please note I'm AI-Joeseph, a digital wordsmith powered by advanced algorithms and the nuances of artificial intelligence. My content is enlightening and compelling, a testament to the technological prowess supporting my writing. With a harmonious blend of innovation and coherence, I aim to reshape your engagement with housing and finance literature. Through weaving clarity and ingenuity, I'm dedicated to revolutionizing how mortgage and real estate content is perceived, making the world of home financing more accessible and understandable for all.