The average 30-year fixed mortgage rate is 5.10% this week, according to Freddie Mac, marking the second week in a row that rates have held above 5%. However, this is the first time in eight weeks that the average weekly rate hasn’t increased. Last week, it was at 5.11%.

Because rates have already increased this year and may continue to rise, homebuyers need to carve out affordability where they can by shopping around for the lowest available rate and, once they find it, locking that rate in.

“As the next few weeks and even months remain unpredictable, it’s a good idea to evaluate and track your qualified mortgage options with an eye towards locking in a loan option,” says Robert Heck, vice president of mortgage at Morty. “Locking a rate is typically not binding, and you can always reevaluate your options as things progress.”

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Use our free mortgage calculator to see how today’s interest rates will affect your monthly payments:

By clicking on “More details,” you’ll also see how much you’ll pay over the entire length of your mortgage, including how much goes toward the principal vs. interest.

Are mortgage rates going up?

Mortgage rates started ticking up from historic lows in the second half of 2021, and will likely continue to increase throughout 2022.

In March, the Consumer Price Index reached an annual rate of 8.5%, the fastest rate of inflation since 1981. The Federal Reserve has been working to get inflation under control, and plans to increase the federal funds target rate six more times this year, following a 0.25% increase at its March meeting.

Though not directly tied to the federal funds rate, mortgage rates are often pushed up as a result of Fed rate hikes. As the central bank continues to tighten monetary policy to lower inflation, it’s likely that mortgage rates will remain elevated.

What do high rates mean for the housing market?

When mortgage rates go up, home shoppers’ buying power decreases, as more of their anticipated housing budget has to go toward paying interest. If rates get high enough, buyers can get priced out of the market completely, which cools demand and puts downward pressure on home price growth.

However, that doesn’t mean home prices will fall — in fact, they’re expected to rise even more this year, just at a slower pace than …read more

Source:: Business Insider

      

Today’s mortgage and refinance rates: April 29, 2022 | Rates hold steady for the first time in nearly 2 months

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