Today’s National Mortgage Rates, November 25, 2022 | Rates Drop Off

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Mortgage rates have seen dramatic changes this year.

The average rate for a 30-year fixed rate has doubled since sitting around 3% this time a year ago. High inflation is the principal cause of the surge in rates, along with the Federal Reserve’s increases to its own interest rate in a bid to quell that inflation.

High mortgage rates have turned the housing market upside down, with a previously hot market cooling significantly. While prices are falling in some areas, that may not make up for the increased costs homebuyers face in higher mortgage rates. Be sure to calculate your monthly payment – and give yourself wiggle room in your budget – to decide if you can actually afford a home.

Here are today’s average interest rates and what they mean for borrowers.

A variety of benchmark mortgage rates declined today. The averages for both 30-year fixed and 15-year fixed mortgages slid down. We also saw an inflation in the average rate of 5/1 adjustable-rate mortgages (ARM).

Take a look at today’s rates:

Mortgage Rate Trends: Why Are Mortgage Rates Changing So Fast?

Persistently high inflation this year has been a principal driver of the upward trend in mortgage rates. The consumer price index was 7.7% year-over-year in October, lower than expected and a promising sign for the economy.

To deal with high inflation, the Federal Reserve has hiked its benchmark short-term interest rate, the federal funds rate, throughout the year, including a fourth consecutive 75-basis-point increase in November. The Fed’s rate increases don’t directly cause changes in mortgage rates, but are based on similar economic factors.

“Strong inflation numbers have never been good for mortgage bonds, which means the mortgage rates are going to trend higher,” says Shashank Shekhar, founder and CEO of InstaMortgage.

Are Current Mortgage Rates Good For Buying a Home Right Now?

The big increase in mortgage rates this year has taken a lot of potential homebuyers out of the market. That could present opportunities for you – if you can afford the higher cost of borrowing money.

Homebuyers are facing less competition and prices are down compared to their all-time highs earlier this year, but they’re still high. If you can find a deal you can afford, it can still be a good opportunity. After all, nobody knows what mortgage rates and prices will be like next year, and buying a home is a lifestyle decision, not just a financial one.

“If they find a house that they love, then they should absolutely pull the trigger,” says Joe Allen, a senior mortgage lending officer at Quontic Bank, an online community development financial institution.

Closing Costs & Loan Fees

The industry term for the upfront fees you pay when you get a home loan is closing costs. The fees for your appraisal, title insurance, and any lender origination charges are all part of your closing costs. In general, closing costs are 3% to 6% of your loan amount, so the larger your mortgage the more you’ll pay as a total dollar amount. Paying attention to the closing costs you pay is important because the higher your closing costs, the higher your annual percentage rate (APR) will be.

Today’s Mortgage Refinance Rates

There’s good news if you’ve been considering a refinance because the average rates for 15-year fixed and 30-year fixed refinance loans dropped. Shorter term, 10-year fixed-rate refinance mortgages also sank.

The refinance averages for 30-year, 15-year, and 10-year loans are:

Check out mortgage rates that meet your distinct needs.

30-Year Fixed Mortgage Interest Rates

The 30-year fixed-mortgage rate average is 6.77%, which is a decrease of 10 basis points from seven days ago.

15-Year Fixed-Rate Mortgage Rates

The median rate for a 15-year fixed mortgage is 6.16%, which is a decrease of 7 basis points compared to a week ago.

A 15-year, fixed-rate mortgage’s monthly payment will be much bigger. So finding room in your budget for a 30-year loan’s monthly payment would be easier. But, 15-year loans have some considerable benefits: You’ll save thousands of dollars in interest and pay off your loan much faster.

5/1 ARM Interest Rates

A 5/1 ARM has an average rate of 5.50%, which is a rise of 1 basis point from seven days ago.

An adjustable-rate mortgage is ideal for borrowers who will sell or refinance before the rate changes. If that’s not the case, their interest rates could end up being significantly higher after a rate adjusts.

For the first five years, a 5/1 ARM will typically have a lower interest rate compared to a 30-year fixed mortgage. Keep in mind that depending on how much your loan’s rate adjusts, your payment has the potential to increase by a large amount.

How We Determine Mortgage Interest Rates

We use Bankrate’s daily mortgage rate data for our mortgage rate trends. These overnight rates are based on a specific personal financial profile, which only includes loans for owner occupied homes with 20% equity or more. Bankrate is part of the same parent company as NextAdvisor.

This table has current average rates based on information provided to Bankrate by lenders from across the country:

Current average mortgage interest rates
Loan typeInterest rateA week agoChange
30-year fixed rate6.77%6.87%-0.10
15-year fixed rate6.16%6.23%-0.07
30-year jumbo mortgage rate6.76%6.85%-0.09
30-year mortgage refinance rate6.75%6.86%-0.11

Updated on November 25, 2022.

Pro Tip

Plug and play your desired mortgage rate and the rest of your loan details into NextAdvisor’s mortgage calculator to get a good idea of what your monthly payment will be.

Mortgage Rate Frequently Asked Questions (FAQ):

How Do I Get the Best Mortgage Rate?

Shopping around for a mortgage is one of the best ways to secure the lowest interest rate.

The mortgage rate you get depends on a variety of factors lenders consider when assessing how the likelihood that you’ll be able to make your mortgage payments for the long term. Your credit score is a big part of this decision. And your loan-to-value (LTV) ratio matters, so having a more substantial down payment is better for your mortgage rate.

But lenders will consider your circumstances differently. So you can give the same documentation to three different banks, and receive mortgage offers with vastly different rates and fees.

Is It a Good Idea to Lock in My Mortgage Rate Right Now?

It’s impossible to know what direction mortgage rates will go from day to day. That’s why a mortgage rate lock is such a useful tool because it protects you if rates go up. And with interest rates being relatively low right now, you should lock in your rate as soon as you can.

A rate lock will only last for a set amount of time, typically 30-60 days. If you hit a snag during closing and it looks like your rate lock will expire you should contact your lender. It may offer an extension of the lock, however, you might have to pay a fee for that privilege.