Mortgage Rates Today
As of October 18, the Freddie Mac national average for 30-year mortgage rates was 4.77%. The average rate for 15-year mortgages was 4.28%, and the 5/1 ARM mortgage rate stood at 4.28%. After jumping several basis points due to last week's Fed meeting, rates have largely hovered around the same level for this week. The 30-year and 15-year mortgage rates moved +0.04% and +0.03% each, while 5/1 ARM rates changed by +0.02%.
U.S. Mortgage Rates Over Time
Mortgage Rates This Week
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There are a few reasons that interest rates for mortgages and other loans are likely to continue climbing. Continued economic growth has prompted the Federal Reserve to implement steady increases in the prime rate, which is the rate that banks pay to borrow funds. As it becomes more costly for mortgage lenders to obtain money, they pass on their increased expenses to borrowers in the form of higher interest rates, which in turn leads to higher mortgage expenses.
Should You Obtain a Mortgage Now?
If you're thinking about buying a home in 2018, the rising trend means that you should consider applying for a mortgage soon. Delaying the date you lock in a rate may increase the long-term cost of your home loan. To understand the savings at stake, consider that a $200,000 balance for a 30-year loan at today's average rate of 4.77% would mean a monthly payment of $837 before taxes and insurance. At March's average rate of 4.45%, that same balance would have cost $806 per month—a significant difference in both short-term and lifetime interest compared to today's rate. This illustrates how important it is to shop across multiple lenders to make sure you're getting the best deal possible.
More Mortgage Tips & Analysis
For more information on how to navigate the mortgage experience, take a look at our informational guides and reviews of popular mortgage lenders.
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