What is the current mortgage rate?

MORTGAGE RATES ARE ON A STEADY CLIMB

Mortgage rates have been on a steady incline since late December 2021 and have reached what many people believe to be their highest point since early 2020. Rates increased across the board for the week ending April 15, 2021, with 30-year fixed-rate mortgages reaching an average of 3.16%. This is up from 2.8% in January and is the highest rate since October 2020 when it was 3.51%.

WHY ARE MORTGAGE RATES CLIMBING?

One of the key factors driving mortgage rates higher is the Federal Reserve’s decision to keep short-term interest rates near zero. When short-term rates are low, bond yields – which are often used to calculate long-term mortgage rates – go down as well. In addition, as the economy is improving, investors are investing in riskier investments again, which can cause mortgage rates to rise if bond yields increase.

HOW TO KEEP MORTGAGE RATES LOW

If you’re looking for a way to keep mortgage rates low, one way is by improving your credit score. A higher credit score can give you access to lower interest rates and better terms from mortgage lenders. Improving your credit score can also help you to qualify for more loan programs, such as FHA, VA, and USDA loans, which can offer even better rates than traditional loan programs.

In addition to improving your credit score, it’s also important to shop around to ensure you’re getting the best rate possible. Compare rates from different lenders to make sure that you’re getting the best deal. Even a slight difference of just 0.25% in your interest rate can translate to big savings over the life of the loan.

Finally, consider locking in your current rate to ensure that you won’t be affected by any future rate increases. Most lenders offer rate locks when you apply for a mortgage, and it’s always a good option to keep in mind if you’re concerned about rising rates.

Mortgage rates have been on a steady climb over the past few months, but there are still ways to keep them from going too high. By improving your credit score and shopping around for the best rate, you can make sure that you get the best mortgage rate possible and the best deal on your mortgage loan.