A Focus on Improving Financial Credentials Can Help Buyers Cope With Rising Mortgage Rates
Mortgage rates aren't in your control, but these factors are.
Mortgage rates have been rising for months and are considerably higher now than where they sat at the start of the year. But borrowers can still take steps to get the most affordable home loan possible. Check out average rates for Friday, April 8 and learn more about how to make your home financing as inexpensive as it can be.
|Mortgage Type||Today's Interest Rate|
|30-year fixed mortgage||4.964%|
|20-year fixed mortgage||4.594%|
|15-year fixed mortgage||4.047%|
30-year mortgage rates
20-year mortgage rates
The average 20-year mortgage rate today is 4.594%, up from 3.101% on Jan. 3.
15-year mortgage rates
The average 15-year mortgage rate today is 4.047%, a considerable increase from 2.537% on Jan. 3.
The average 5/1 ARM rate is 4.033% compared with an average rate of 2.943% on Jan. 3 of this year.
How you can get the most affordable mortgage possible
Although rates are much higher than at the start of the year, national average rates are not the only factor affecting what borrowers pay for their home loans. Would-be home buyers can get the best possible rates, and often score an affordable loan if:
- They have good credit
- They make a hefty down payment, which is ideally around 20%
- They have plenty of income relative to the mortgage debt they are taking on
- They shop around for rates and get quotes from several of the best mortgage lenders before committing to one
Although even well-qualified borrowers can expect to pay more than the record-low rates found during the pandemic, taking steps to improve your financial credentials is the best way to cope with rising rates. You can't control what lenders do, but you can make yourself an attractive customer who will get offered the best possible deals available now.
Our Research Expert
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
Copyright © 2018 - 2023 The Ascent. All rights reserved.