With inflation spiking throughout 2021 and into 2022, the Fed is now looking to raise rates to stem borrowing and slow down the economy, and mortgage lenders will follow suit. This means that mortgage interest rates have already started to…
This means that mortgage interest rates have already started to tick up, and will likely continue to rise. Researchers ranked locations by the share of all fixed-rate mortgages—including both 15- and 30-year—that were below a 3.0% interest rate.After an extended run of intense competition and high prices in the residential real estate market, 2022 is bringing signs that the market could begin to cool soon.
For homebuyers, this means that mortgage interest rates have already started to tick up and will likely continue to rise in the months ahead. The average interest rates for both 15-year fixed rate mortgages and 30-year fixed rate mortgages are up by more than a percentage point since the beginning of 2022. After remaining at or below 2.5% throughout 2021, the 15-year rate rose to 3.8% at the end of March 2022, while the 30-year rate hovered between 2.7% and 3.2% in 2021 before rising to 4.7%.
One other significant factor in mortgage interest rates is geography. Rates vary from location to location due to differences in economic characteristics, laws governing lenders, and real estate market conditions. Generally, real estate markets serviced by fewer lenders often have higher rates because there is less competition to drive rates down. Lenders in areas where more borrowers have low incomes or bad credit will also be less likely to offer low rates.
While the median interest rate across all fixed rate mortgages in 2020 was 3.15%, over a third of all buyers secured rates below 3.0%. Among states, Mississippi and New Mexico have the lowest share of mortgages with rates below the 3.0% threshold at 25.6%, while nearly half of borrowers secured rates below 3.0% in U.S.-leading South Dakota. At the metro level, some of America’s most expensive markets—including the Bay Area and Boston—offer low interest rates most commonly.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Kindergarten vaccination rates dip below target for 2020-2021National vaccination coverage for kindergarteners during the 2020-2021 school year fell below the nationwide target of 95% coverage, according to a new CDC analysis.
Read more »
Violent crime, property crime rises in San Diego County in 2021'While the 2021 crime rates are historic lows for our region, violent and property crimes were up last year,' SANDAG Senior Director of Data Science Cynthia Burke said.
Read more »
US investors realized 6x more crypto gains in 2021 than UK investorsCrypto investors in the U.S. saw the highest realized gains of any country, generating $46.9 billion in returns, nearly 6x the amount earned by the next country.
Read more »
Senior Bowl adds 5 members to Hall of Fame and selects 2021 Rookie of the YearThe recipients will be honored in the annual induction ceremony in June.
Read more »
Rapper A$AP Rocky arrested at LA airport in connection with 2021 shootingThe performer, whose real name is Rakim Mayers, was detained on suspicion of assault with a deadly weapon, the Los Angeles Police Department said in a statement Wednesday.
Read more »
Europe suffered year of climate chaos in 2021, EU report saysEuropeans endured the hottest summer on record last year, with wildfires, floods and intense heatwaves hitting the continent, according to a report by EU scientists released Friday.
Read more »