Current Mortgage Interest Rates Take a Dip on March 10; Homeowners Can Save Big with New Touchstone Rates
Mortgage Interest Rates Today for March 10, 2023: Touchstone Rate Recedes
Homebuyers have been on edge for nearly a year as mortgage rates hit a 20-year high in late 2022. But the macroeconomic environment is changing once again, as rates have taken a split path over the last seven days. While average 15-year fixed mortgage rates have remained unchanged, average interest rates on 30-year fixed mortgages have receded. The average rate of the most common type of variable-rate mortgage, the 5/1 adjustable-rate mortgage, has increased. After seeing some relief in late 2022, borrowers may continue to see a slight decrease in mortgage rates this year, although they’re unlikely to return to the rock-bottom levels of 2020 and 2021.
What Contributed to the Rise in Mortgage Rates in 2022?
Inflation and the series of rate hikes the Federal Reserve implemented in 2022 to curb it contributed partly to the rise in mortgage rates. However, the Fed’s decision to raise the federal funds rate by 0.25% on February 1 after its latest meeting — the smallest increase since March 2022 — suggests that inflation may be cooling and the central bank may be able to ease up on its rate hikes.
What Can Homebuyers Expect in 2023?
“Expect mortgage rates to yo-yo up and down in the first half of the year, at least until there is a consensus about when the Fed will conclude raising interest rates,” says Greg McBride, CFA, and chief financial analyst at Bankrate. (Like CNET Money, Bankrate is owned by Red Ventures.) McBride expects rates to fall more consistently as the year progresses, with 30-year fixed mortgage rates ending near 5.25%.
Rather than worrying about market mortgage rates, homebuyers should focus on what they can control: getting the best rate for their situation. Take steps to improve your credit score and save for a down payment to increase your odds of qualifying for the lowest rate available. Also, compare the rates and fees from multiple lenders to get the best deal.
- The average 30-year fixed mortgage interest rate is currently 7.05%, a decline of 7 basis points from seven days ago.
- The most frequently used loan term is a 30-year fixed mortgage.
- A 30-year fixed mortgage typically has a greater interest rate than a 15-year fixed-rate mortgage but also a lower monthly payment.
While mortgage rates may fluctuate in the first half of 2023, homebuyers should improve their credit score and save for a down payment to increase their odds of qualifying for the lowest rate available. In addition, it’s essential to compare rates and fees from multiple lenders and look at the annual percentage rate, or APR, to ensure you’re comparing apples to apples. With a proactive approach, homebuyers can save thousands over their mortgage life.
The recent decline in 30-year fixed mortgage interest rates is great news for homebuyers patiently waiting for rates to come down. While 2023 may see continued rate volatility, borrowers who take proactive steps to secure the lowest rates will ultimately benefit. Whether you’re a first-time homebuyer or a seasoned pro, it’s always best to weigh your options carefully before investing in a mortgage.