Today's mortgage and refinance rates: November 9, 2022 |  Fixed rates drop slightly

Today’s mortgage and refinance rates: November 21, 2022 | Rates remain low despite strong jobs data

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Mortgage rates remain significantly lower today than they were two weeks ago, which is good news for borrowers.

As inflation continues to slow, mortgage rates are also expected to decline. But the labor market is one sector of the economy that has shown continued strength despite hikes in the Federal Funds rate by the Federal Reserve.

Last week, unemployment insurance claims fell, according to the Department of Labor. The latest jobs report, released earlier this month, showed the US economy added more jobs than expected in October.

Fed Chairman Jerome Powell indicated that the central bank views the labor market as a key indicator of whether the economy is indeed cooling in response to its rate hikes. At his news conference after the Fed’s November meeting, Powell noted that the labor market was “unbalanced.”

“Reducing inflation will likely require an extended period of below-trend growth and some easing of labor market conditions,” Powell said.

So far, markets are expecting a 50 basis point hike from the Fed at its December meeting, according to the CME FedWatch Tool. But if economic data continues to show a still-hot labor market and inflation doesn’t come down further, the Fed could opt for a bigger hike. This would likely push up mortgage rates.

Mortgage rates today

Type of mortgage Average rate today
This information was provided by Zillow. See more mortgage rates on Zillow

Mortgage refinance rates today

Type of mortgage Average rate today
This information was provided by Zillow. See more mortgage rates on Zillow

mortgage calculator

Use our free mortgage calculator to see the impact of today’s mortgage rates on your monthly payments. By plugging in different rates and terms, you’ll also understand how much you’ll pay over the life of your mortgage.

mortgage calculator

$1,161
Your estimated monthly payment

  • pay one 25% a higher down payment would save you $8,916.08 on interest charges
  • Lower the interest rate by 1% would save you $51,562.03
  • Pay an extra fee $500 each month would reduce the term of the loan by 146 month

Click “More Details” for tips on how to save money on your long-term mortgage.

30-year fixed mortgage rates

The current average 30-year fixed mortgage rate is 6.61%, according to Freddie Mac. This is a drop of nearly 50 basis points from the previous week.

The 30-year fixed rate mortgage is the most common type of mortgage. With this type of mortgage, you’ll pay back what you borrowed over 30 years and your interest rate won’t change for the life of the loan.

The 30-year long term allows you to spread your payments out over a long period, which means you can keep your monthly payments lower and more manageable. The tradeoff is that you’ll get a higher rate than with shorter terms or adjustable rates.

15-year fixed mortgage rates

The average 15-year fixed mortgage rate is 5.98%, down from the previous week, according to data from Freddie Mac.

If you’re looking for the predictability that comes with a fixed rate, but are looking to spend less on interest over the life of your loan, a 15-year fixed rate mortgage might be right for you. Since these terms are shorter and have lower rates than 30-year fixed rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you will have a higher monthly payment than you would with a longer term.

Are mortgage rates increasing?

Mortgage rates started to recover from historic lows in the second half of 2021 and have risen significantly so far in 2022. But mortgage rates have fallen recently and they may not come back up this year.

Over the past 12 months, the consumer price index has increased by 7.7%. The Federal Reserve has been struggling to keep inflation under control and is expected to raise the federal funds rate again this year, following increases at its previous six meetings.

Inflation remains high, but has started to slow, which is a good sign for mortgage rates and the economy in general.

How do Fed rate hikes affect mortgages?

The Fed raised the federal funds rate this year in an attempt to slow economic growth and bring inflation under control.

Mortgage rates are not directly affected by changes in the federal funds rate, but they often tend to rise or fall ahead of Fed policy changes. This is because mortgage rates change based on investor demand for mortgage-backed securities, and that demand is often influenced by how investors expect Fed hikes to affect the economy. in general.

As inflation begins to decline, mortgage rates are also expected to decline. But the Fed has signaled it is watching for continued signs of slowing inflation and won’t stop raising rates anytime soon, though it may start opting for more modest hikes in future meetings. .

Are HELOCs a good idea right now?

Many homeowners have gained great net worth over the past couple of years as home prices have risen at an unprecedented rate. But since rates are so high today, tapping into that equity can be costly.

For homeowners looking to leverage the value of their home to cover a big purchase, like a home improvement, a home equity line of credit (HELOC) can still be a good option.

A HELOC is a line of credit that lets you borrow against the equity in your home. It works similar to a credit card in that you borrow what you need rather than getting the full amount you borrow in one lump sum.

Depending on your finances and the type of HELOC you get, you may be able to get a better rate with a HELOC than with a home equity loan or cash refinance. Just keep in mind that HELOC rates are variable, so if rates start to increase further, yours will likely increase as well.

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