Mortgage interest rates today, October 24 | Update of fixed and variable rate (ARM) for housing market
Mortgage costs have increased as the Fed uses interest rates to hit inflation as homeowners may struggle after a house-buying boom.
Mortgage costs have increased as the Fed uses interest rates to hit inflation as homeowners may struggle after a house-buying boom.
As inflation in the United States has soared over the past 12 months, the Federal Reserve has chosen to hike interest rates to stop people and businesses spending.
These interest rates are having a knock-on effect for homeowners as mortgage rates are directly affected by changing interest rates. With another rate rise set for November expect further increases in your mortgage payments.
The average mortgage rates for Monday, 24 October 2022 are as follows:
- 30-year fixed mortgage: 7.218%
- 20-year fixed mortgage: 6.915%
- 15-year fixed mortgage: 6.211%
- 10-year fixed mortgage: 5.950%
- 5-year adjustable rate mortgage: 6.373%
The 30-year mortgage rate in the US has moved up to 6.94%, its highest level since 2002. In early 2021 it hit an all-time low of 2.65%. pic.twitter.com/bRs3G4x8bn
— Charlie Bilello (@charliebilello) October 20, 2022
The covid-19 pandemic wrought chaos with household finances and the uncertainty that it brought sent interest rates tumbling. In January 2021 the average rate for a 30-year fixed mortgage in the US slumped to 2.65%, the lowest in years. A far cry from rates today.
New mortgages fall as interest rates discourage prospective buyers
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In the last week of September the Mortgage Bankers Association found that the total volume of mortgage applications had fallen by 14.2%, when compared to the previous seven days. This put it at the lowest seasonal-adjusted level since 1997, at a time when mortgage rates were at their highest in nearly 15 years.
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The amount of stock remaining on the housing market for more than 30 days has risen dramatically too, with many buyers looking to wait until rates have fallen before committing to a mortgage.