Last week was an exciting week in the world of mortgage rates with the highly anticipated FOMC (Federal Open Market Committee) meeting and the release of the October Jobs report. Wednesday was a pivotal day, as the Federal Reserve delivered the message that rate watchers had been eagerly waiting for: there would be no rate hike in November. Further, the release of the October Jobs report on Friday, added optimism with 150,000 jobs added in October, lower than the anticipated 180,000.
The cumulative impact of these developments has made this week one of the most significant we’ve seen since early March. Interest rates have dropped by over half a percentage point, and in some cases, even more. It’s a trend that has left many wondering about the path ahead.
Predicting the future of interest rates is a challenging task, and as always, the data we gather over the next few weeks and months will provide us with more insights. However, there’s a growing possibility that we have finally witnessed the peak in interest rates, at least for the time being.
Credit card delinquency rates are on the rise, especially among millennials aged 30 to 39, who are grappling with substantial student loan debt. As inflation puts pressure on finances, more people are accumulating credit card debt and struggling to make payments, with a growing proportion of overdue balances exceeding 180 days, according to the Consumer Financial Protection Bureau.
Additionally, about one-tenth of credit card users find themselves in a cycle of “persistent debt,” paying more in interest and fees than reducing their principal. This pattern is increasingly difficult to break and carries significant financial consequences. Ted Rossman, a senior industry analyst at Bankrate, emphasizes that credit card debt often constitutes the most costly debt for many.
This rise in credit card debt has increased the demand for homeowners using their equity as a means for consolidating their consumer debt. With a home equity line of credit (HELOC) or a fixed-rate 2nd (equity loan/HELOAN), borrowers are able to significantly reduce their monthly payments by borrowing at a much lower interest rate and also being able to extend their repayment term up to 20 or 30 years. To gain a better understanding of how you can access your home’s equity, our team of mortgage consultants is here to assist you.
Mortgage rates experienced a slight decrease when compared to the previous week, affecting all loan products.
|30-year fixed||7.46%||7.88%||⇩ – 0.42|
|15-year fixed||6.85%||7.24%||⇩ – 0.39|
|30-year jumbo||7.82%||8.01%||⇩ – 0.19|
|5/1 ARM||7.19%||7.24%||⇩ – 0.05|
|30-year FHA||6.82%||7.32%||⇩ – 0.48|
|30-year VA||6.83%||7.33%||⇩ – 0.50|
DISCLAIMER: ALL LOANS ARE SUBJECT TO CREDIT APPROVAL. INTEREST RATES ARE SUBJECT TO CHANGE DAILY AND WITHOUT NOTICE. CURRENT INTEREST RATES SHOWN ARE INDICATIVE OF MARKET CONDITIONS AND INDIVIDUAL QUALIFICATIONS AND WILL VARY UPON YOUR LOCK-IN PERIOD, LOAN TYPE, CREDIT SCORE, LOAN TO VALUE, PURPOSE, AND LENDING SOURCE.
30-year fixed-rate mortgages
Currently, the 30-year fixed-rate mortgage stands at 7.46%, marking a decrease of 42 basis points from the previous week. Despite its higher interest rate compared to the 15-year mortgage, the 30-year option appeals to many buyers due to its benefit of offering more affordable monthly payments.
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15-year fixed-rate mortgages
The present interest rate for a 15-year fixed-rate mortgage is 6.85%, demonstrating a reduction of 39 basis points compared to the previous week. Opting for a 15-year mortgage allows borrowers to accelerate their loan repayment compared to the 30-year option. Although this results in higher monthly payments, it significantly reduces the overall interest paid throughout the loan’s duration.
30-year jumbo mortgages
The interest rate for a 30-year jumbo loan has dropped by 19 basis points, now standing at 7.82%. Jumbo loans typically come with higher interest rates due to their larger loan amounts. However, the current rate is in line with the average for a 30-year fixed-rate mortgage.
5/1 adjustable-rate mortgages
Currently, the interest rate for a 5/1 adjustable-rate mortgage (ARM) is 7.19%, showing a 5 basis point decrease from the previous week. Typically, adjustable-rate mortgages feature lower interest rates in contrast to fixed-rate mortgages, with the current difference being to 27 basis points in comparison to a 30-year fixed-rate mortgage.
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