Current Mortgage Rates and Forecast
Bob Shahidadpury
Mortgage Loan Officer at Loan Factory NMLS# 2120726. Company NMLS #320841
As of today, the current average 30-year fixed mortgage interest rate is 7.88% , increasing 10 basis points since the same time last week 1 . If you’re in the market for a mortgage refinance, the average 30-year refinance interest rate is 8.06% , rising 14 basis points over the last seven days 1 .
The average rate on a 30-year home loan surged past 7.5 percent for the first time since November 2000 2 . For October, experts don’t expect rates to depart much from that high point 2 . The biggest risk to mortgage rates is a broad souring of sentiment for Treasurys — a low-probability but extremely high-impact event
Forecast
Looking ahead, experts tend to agree that mortgage rates will likely drop over the next year and hit 5% by the end of 2024 or the beginning of 2025 3 . This can be largely attributed to the Federal Reserve’s ongoing fight against inflation, juxtaposed with uncertainty in the banking sector 4 .
However, with duress permeating the financial market and the fallout from U.S. debt ceiling talks, the Fed may continue making hikes to bring interest rates down 4 . With the economy likely heading into a recession, it’s possible we’ve already seen the peak of this rate cycle 4 .
Conclusion
While it’s a challenging market for borrowers, it’s more important than ever to shop around for mortgage offers before committing to a loan 1 . Keep in mind that these rates are just averages — some lenders advertise below-average rates 1 .
Stay tuned for more updates as we navigate these fluctuating times together.