Mortgage Interest Rates for Oct. 19, 2022: Rates Increase

A number of closely followed mortgage rates crept upward today. The average 15-year fixed and 30-year fixed mortgage rates both saw growth. For variable rates, the 5/1 adjustable-rate mortgage also ticked up.

Mortgage rates have been increasing consistently since the start of 2022, following in the wake of a series of interest hikes by the Federal Reserve.

Interest rates are dynamic and unpredictable — at least on a daily or weekly basis — and they respond to a wide variety of economic factors. But the Fed’s actions, designed to mitigate the high rate of inflation, are having an unmistakeable impact on mortgage rates. If you’re looking to buy a home, trying to time the market may not play to your favor.

If inflation continues to increase and rates continue to climb, it will likely translate to higher interest rates — and steeper monthly mortgage payments. As such, you may have better luck locking in a lower mortgage interest rate sooner rather than later. No matter when you decide to shop for a home, it’s always a good idea to seek out multiple lenders to compare rates and fees to find the best mortgage for your specific situation.

30-year fixed-rate mortgages

For a 30-year, fixed-rate mortgage, the average rate you’ll pay is 7.16%, which is an increase of 8 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) The most frequently used loan term is a 30-year fixed mortgage.

A 30-year fixed rate mortgage will usually have a lower monthly payment than a 15-year one — but usually a higher interest rate. You won’t be able to pay off your house as quickly and you’ll pay more interest over time, but a 30-year fixed mortgage is a good option if you’re looking to minimize your monthly payment.

15-year fixed-rate mortgages

The average rate for a 15-year, fixed mortgage is 6.37%, which is an increase of 7 basis points from the same time last week. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and interest rate will have a larger monthly payment.

But a 15-year loan will usually be the better deal, as long as you’re able to afford the monthly payments. You’ll most likely get a lower interest rate, and you’ll pay less interest in total because you’re paying off your mortgage much quicker.

5/1 adjustable-rate mortgages

A 5/1 ARM has an average rate of 5.44%, a rise of 8 basis points compared to a week ago. For the first five years, you’ll typically get a lower interest rate with a 5/1 ARM compared to a 30-year fixed mortgage.

However, since the rate shifts with the market rate, you might end up paying more after that time, as described in the terms of your loan. Because of this, an ARM could be a good option if you plan to sell or refinance your house before the rate changes. But if that’s not the case, you may be on the hook for a much higher interest rate if the market rates change.

Mortgage rate trends

Though mortgage rates were historically low at the beginning of 2022, they have been climbing steadily since.

The Federal Reserve recently raised interest rates by another 0.75 percentage points in an attempt to curb record-high inflation. The Fed has raised rates a total of five times this year, but inflation still remains high. As a general rule, when inflation is low, mortgage rates tend to be lower.

When inflation is high, rates tend to be higher. Though the Fed does not directly set mortgage rates, the central bank’s policy actions influence how much you pay to finance your home loan. If you’re looking to buy a house in 2022, keep in mind that the Fed has signaled it will continue to raise rates, and mortgage rates could increase as the year goes on.

Whether rates follow their upward projection or begin to level out hinges on if inflation actually slows. We use data collected by Bankrate, which is owned by the same parent company as CNET, to track rate changes over time. This table summarizes the average rates offered by lenders across the country:

Today’s mortgage interest rates

Rates accurate as of Oct.

19, 2022.

How to find the best mortgage rates

You can get a personalized mortgage rate by reaching out to your local mortgage broker or using an online calculator. Make sure to think about your current financial situation and your goals when trying to find a mortgage. A range of factors — including your down payment, credit score, loan-to-value ratio and debt-to-income ratio — will all affect the interest rate on your mortgage.

Having a good credit score, a larger down payment, a low DTI, a low LTV, or any combination of those factors can help you get a lower interest rate. The interest rate isn’t the only factor that affects the cost of your home — be sure to also consider other costs such as fees, closing costs, taxes and discount points. Make sure to shop around with multiple lenders — like credit unions and online lenders in addition to local and national banks — in order to get a loan that’s best for you.

What is a good loan term?

When picking a mortgage, remember to consider the loan term, or payment schedule.

The mortgage terms most commonly offered are 15 years and 30 years, although you can also find 10-, 20- and 40-year mortgages. Another important distinction is between fixed-rate and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are fixed for the duration of the loan.

Unlike a fixed-rate mortgage, the interest rates for an adjustable-rate mortgage are only stable for a certain amount of time (commonly five, seven or 10 years). After that, the rate adjusts annually based on the current interest rate in the market. One important factor to consider when deciding between a fixed-rate and adjustable-rate mortgage is how long you plan on living in your home.

Fixed-rate mortgages might be a better fit for people who plan on staying in a home for a while. Fixed-rate mortgages offer greater stability over time in comparison to adjustable-rate mortgages, but adjustable-rate mortgages might offer lower interest rates upfront. If you don’t have plans to keep your new home for more than three to 10 years, though, an adjustable-rate mortgage may give you a better deal.

There is no best loan term as an overarching rule; it all depends on your goals and your current financial situation.

It’s important to do your research and think about your own priorities when choosing a mortgage.

Tags:

bloch listed on couponmatrix.ukeasirent listed on couponmatrix.ukelectrical-world listed on couponmatrix.ukthe-gourmet-society listed on couponmatrix.ukninja-kitchen listed on couponmatrix.uktrusted-travel listed on couponmatrix.uk
bloch listed on couponmatrix.ukWhatever style of dance or music makes your heart fly, Bloch is there to help you embrace your passion. As experts in creating shoes, clothing and accessories for everything from ballet to contemporary dance, all any dance-lover needs to get into the flow for less is the latest Bloch discount code. With dance providing such a varied and expressive medium, it’s good to know that Bloch is always ready to get you in the groove with immaculately crafted dance gear.
easirent listed on couponmatrix.ukMillions of cars are at your disposal when you choose Easirent for car hire, so whether for business or leisure you’ll have a mode of transport to fit in perfectly with your schedule at a minimal cost. When you make your Easirent booking, be sure to apply an Easirent promo code to lower the price of your hire, leaving you to sit back and enjoy the ride, stress-free!
electrical-world listed on couponmatrix.ukElectrical World is the ideal place to buy all your electrical goods and appliances – from big-ticket items like fridges to the humble light switch. Whether you’re after a new TV, washing machine or something else entirely, make sure you grab an Electrical World discount code from Groupon before you buy. With free delivery, regular promo codes and up to 50% off or more in the sale, it’s even easier to get the gadgets and gizmos you need for less! Electrical goods can become a costly burden for the average household, which is why we’re constantly refreshing our page with new ways to get money off your Electrical World purchase. The next time you need to do some repairs, start a DIY project or invest in new household appliances, check Groupon for the latest money-saving tips. Customers should also explore the Electrical World sale for whopping discounts on tools, electricals and accessories. From lighting and wiring to tools and fixings, Electrical World is a DIY-lovers dream. Stocked with everything you need, with many items included in the sale section too, it’s the best place to find affordable supplies – especially if you have an Electrical World voucher code from Groupon! We update our page regularly to reflect the latest Electrical World promo codes, so make a quick stop here to nab the best price.
the-gourmet-society listed on couponmatrix.ukIf you’re looking for cheap ways to eat out in an array of restaurants across the country, check out our Gourmet Society discount codes and find reduced rates on a host of meals. Guests can sign up to Gourmet Society and get up to 50% off meals at over 6,500 restaurants, whether Italian, Indian, Chinese, French, or traditional English cuisine. They can use the mobile app to search eateries, get directions and claim their discount, and benefit from unlimited use and instant access to their savings. Deals include 50% off the food bill, 25% off the total bill, and two-for-one on one, two or three courses. The Gourmet Society is a UK dining club whose members enjoy savings at thousands of restaurants. They dine for less in a host of eateries ranging from Michelin and AA Rosette winners to local curry houses and pubs. Members of the Gourmet Society receive a restaurant guide and handy dining card which entitles them to deals on meals, letting them take a break from cooking whenever they feel like it. Armed with a Gourmet Society voucher, you can take advantage of discounted access to a host of branches from some of the biggest dining chains in the country. Tuck into Italian cuisine at Prezzo, Bella Italia and Café Rouge, and munch on French dishes at Hotel du Vin & Bistro. Grab a pre-party meal at Walkabout, indulge in traditional British cuisine at Hall & Woodhouse, and feast on a meaty creation at Handmade Burger Co. So why not check out our Gourmet Society discount codes on Groupon if you’re looking to pick up a membership card to use at an array of restaurants across the country, whether fine dining, traditional pub or lounge bar.
ninja-kitchen listed on couponmatrix.ukIf you're looking for sleek, stylish and reliable kitchen accessories, Ninja Kitchen is brand to buy. From personal blenders and food processors to air fryers and slow cookers, your new Ninja Kitchen appliance will complete your kitchen. Turn meal times from stressful to blissful with a Ninja Kitchen discount code and get cooking up a storm for less. Whether you want to slow roast a chicken dinner or simply whip up a few delicious smoothies, Ninja Kitchen has the perfect kitchen gadget for you.
trusted-travel listed on couponmatrix.ukGet your holiday off on the right foot with Trusted Travel and take the hassle out of booking airport parking, lounges and transfers online. Don’t forget to look for a Trusted Travel discount code from us before you get to work ticking off your to-do list, and you could save a packet on these travel essentials and join more than 150,000 happy customers. With a wide range of parking solutions and VIP lounges at all major UK airports, you can sit back and let Trusted Travel take care of the details, each and every time you fly.