Anticipating CPI: Why Rates are on the Rise Now!

Mortgage rates have been on a cheerful decline over the past few weeks, but today, they’ve taken a slight step back. As of now, the 30-year fixed mortgage rate has ticked up by five basis points to a noteworthy 6.26%. Meanwhile, the 15-year fixed rate has climbed nine basis points to reach 5.62%.

Today is significant, as the Bureau of Labor Statistics has just dropped the latest Consumer Price Index (CPI), a critical gauge of inflation. With economists forecasting an uptick in inflation for November, it seems this expectation is nudging mortgage rates higher. The anticipation is palpable!

Curious? Dive into: How inflation impacts mortgage rates

Now, let’s check out the current mortgage rates, according to the latest data:

• 30-year fixed: 6.26%

• 20-year fixed: 6.08%

• 15-year fixed: 5.62%

• 5/1 ARM: 6.59%

• 7/1 ARM: 6.35%

• 30-year VA: 5.75%

• 15-year VA: 5.39%

• 5/1 VA: 5.91%

Keep in mind, these figures are national averages rounded to the nearest hundredth. It’s essential to stay informed!

Want more tips? Check out: 5 strategies for getting the lowest mortgage rates

And here are the current mortgage refinance rates, fresh off the press:

• 30-year fixed: 6.34%

• 20-year fixed: 6.19%

• 15-year fixed: 5.78%

• 5/1 ARM: 6.33%

• 7/1 ARM: 6.60%

• 30-year VA: 5.82%

• 15-year VA: 5.59%

• 5/1 VA: 5.70%

Once again, these numbers reflect national averages rounded to the nearest hundredth. Typically, mortgage refinance rates can be a bit higher than rates when purchasing a new home, but that’s not a hard and fast rule!

Curious about your potential payments? Grab Yahoo Finance’s free mortgage calculator to explore how different interest rates and loan terms might affect your monthly budget. You can even factor in home price and down payment amounts for a clearer picture.

Our calculator also takes into account homeowners insurance and property taxes in your monthly payment estimates. Plus, you can enter costs for private mortgage insurance (PMI) and HOA fees if applicable, ensuring you have a well-rounded estimate!

When considering a 30-year fixed mortgage, you’re looking at two major advantages: lower monthly payments and predictability.

The appealing aspect of a 30-year fixed-rate mortgage is that your payments stretch over a longer period, leading to a much more manageable monthly payment. Plus, unlike adjustable-rate loans, your rate won’t fluctuate year to year, providing you with peace of mind regarding your budget. Regular changes to homeowners insurance or property taxes might be the only factors affecting your payment.

However, keep in mind the primary downside of a 30-year fixed mortgage is the total interest paid — both in the short run and long run.

With a longer term, you’ll face a higher interest rate compared to shorter fixed terms, making your total cost over time significantly higher as well.

Conversely, the pros of a 15-year fixed mortgage are enticing. While your monthly payments remain predictable, the shorter term often comes with lower interest rates. Plus, you’ll pay off your mortgage 15 years earlier, potentially saving you thousands in interest. It’s a smart move if you’re looking to reduce your overall financial burden!

However, with the same total amount paid off in half the time, expect those monthly payments to be higher than a 30-year option.

Explore further:15-year vs. 30-year mortgages

Adjustable-rate mortgages provide a locked-in rate for an initial period but change periodically thereafter. For instance, a 5/1 ARM maintains your rate for the first five years before adjusting annually for the remaining 25 years.

The bright side? The introductory rate is typically lower than a 30-year fixed rate, resulting in lower monthly payments initially. However, current averages indicate that fixed rates are actually more favorable at the moment. It’s wise to chat with your lender before making your move!

But beware — with an ARM, you can’t predict future rates after the initial period, which might lead to a higher cost down the line. Your monthly payments could vary significantly year after year.

If you plan to relocate before the introductory period concludes, you could enjoy the perks of a low rate without the risk of increases later on. Sounds like a win-win!

Interested in learning more?Adjustable-rate vs. fixed-rate mortgage

The current national average for a 30-year mortgage stands at 6.26%. Just remember, rates can fluctuate based on your location. If you’re eyeing a property in a high-cost area, those rates could soar even higher!

While mortgage rates may dip slightly before 2024 wraps up, don’t expect a dramatic drop. Projections suggest a gradual decrease in 2025, but with uncertainties surrounding political and economic factors, it’s hard to say how much rates will actually fall.

As it stands, after a couple of weeks of encouraging declines, mortgage rates have nudged upward today. Stay tuned for what’s next in this ever-evolving financial landscape!

Securing a low mortgage refinance rate mirrors the journey of purchasing your home. Focus on boosting your credit score and lowering your debt-to-income ratio (DTI). Refinancing to a shorter term can net you a better rate, despite higher monthly payments. Every little bit helps!