Regarding Mortgage Loans, the fixed interest type is spread over 30 years, 20 years, 15 years or 10 years. Further, you have the ARM or adjustable rate mortgage loans where interest rates vary according to market forces, considered risky. Some ARMs comprise 10/6, 7/6 and 5/6 terms.
Jumbo loans involve hefty amounts, higher than conventional loans.
FHA and VA are some other types of loans, Federal Housing Administration and Veteran affairs. Interest rates, durations, terms and conditions vary quite a bit across the types of loans.
Check out the Current mortgage rates
Alpha mentions weekly national mortgage rates as compared to their discounts. For the 30-year fixed mortgage loan, they claim the national average stands at 5.57% while they offer 4.80%.
Similarly, they offer 3.87% for the 15-year fixed while the national average is 4.82%.
Regarding the 10-year fixed, they offer 3.92% while the national average stands at 4.80%.
Shall we Compare Today's Mortgage Rates?
Evaluation will be possible with lender Beta! Beta proposes simpler rates with no averages and comparisons. The 30-year fixed, 20-year fixed, 15-year fixed and 10-year fixed loans require 5.26%, 4.85%, 4.54% and 4.45% respectively.
The 10/6 ARM, 7/6 ARM and 5/6 ARM loans charge 5.54%, 5.39% and 5.34% respectively.
They are opting for Jumbo loans, 30-year fixed and 15-year fixed charge 4.69% for both durations.
FHA 30-year fixed and VA 30-year fixed charge 5.30% and 5.39%.
7 factors that affect Current mortgage rates
- Still living in the shadow of the pandemic and the Ukraine war, inflation is increasing. Inflation weakens the currency and its purchasing power. Accordingly, lenders need to charge higher interest rates. Lenders face a risk of catering to demand and supply for loans to buy homes.
- Economic growth indicators reflect the financial health. Unemployment and gross domestic product at the moment have been severely affected by the pandemic. Yet, demand for housing loans continues and so do the higher interest rates.
- Federal Reserve Bank follows a monetary policy that affects interest rates indirectly. FRB does not specify interest rates but they decide the money supply. Increased money supply brings down the interest rate. Less money means higher interest rates.
- Locations across the states and the demand for houses matter in deciding interest rates. In difficult conditions like now, the trend is towards renting homes which means a decline in the demand for new homes and interest rates should fall.
- Financial companies sell MBSs or mortgage-backed securities as investments. If returns are high, it favours buyers. The 10-year Treasury bond yield is one such investment.
- Higher credit ratings certainly decrease the interest rate offered. Make sure to check your credit scores and get rid of any errors. Investigate how to raise credit scores.
- Home location and price, loan term and amount, and down payments also decide the interest rate charged. Research Current mortgage rates very carefully.
