Mortgage rates rose on Tuesday: The average 30-year mortgage rate is 3.88%, which equates to a $470.52 monthly payment per $100,000 borrowed, or $23.15 higher than the equivalent payment would have been a month ago.
If you were to opt for a shorter term, the average 15-year mortgage rate is 3.07%, which equates to a $693.95 monthly payment per $100,000 borrowed, or $17.71 higher than the equivalent payment would have been a month ago.
|
Rate (National Average) |
Today |
1 Month |
|---|---|---|
|
4.41% |
4.43% |
|
|
30-Year Fixed |
3.88% |
3.47% |
|
15-Year Fixed |
3.07% |
2.70% |
|
30-Year Fixed Refi |
3.95% |
3.49% |
|
15-Year Fixed Refi |
3.14% |
2.72% |
|
5/1-ARM |
3.27% |
2.99% |
|
5/1-ARM Refi |
3.51% |
3.13% |
Data source: Bloomberg.
Mortgage rates: The ride up continues, with consequences for homebuyers
Mortgage rates continued their upward march higher on Tuesday in the wake of last week's election result. Last Tuesday, the 30-year mortgage rate was 3.47%; today, it stands 41 basis points higher, at 3.88% (one basis point is equal to a hundredth of a percentage point).
That move is not without consequences, according to an article published on Bloomberg today under the title, "Spike in mortgage rates throw a wrench into U.S. housing market":
The spike in borrowing costs in response to President-elect Donald Trump's pro-growth agenda is causing some heartburn in America's housing industry. San Diego mortgage broker Shanne Sleder said a third of his clients, many of whom were already stretching budgets to buy homes in pricey southern California, are having to reconsider what they can afford as rates soar.
Whether or not this represents a lasting change or simply a temporary reaction is unknowable at this stage, but last week's political tsunami may ultimately provide the catalyst for the end of a bond bull market that is some 35 years old (remember -- bond prices move inversely with bond yields).
