Mortgage rates are still at historic lows overall, but fixed rates have been inching upward for the last two months.
In early November, the Federal Reserve announced that it will taper its purchasing of assets, including mortgage-backed securities. The Fed’s aggressive buying has helped the US economy during the COVID-19 pandemic and keep mortgage rates low. Now that the Fed is slowing down purchasing, many wonder if mortgage rates will make interest rates spike.
“This was expected and has been priced into the bond market over the past few months, driving a gradual uptick in mortgage rates,” Robert Heck, vice president of mortgage at Morty, told Insider. “This anticipation meant that the announcement didn’t trigger any major shift in rates.”
Mortgage rates will probably go up in 2022, but they should stay relatively low through the end of 2021.
Current mortgage rates
Current refinance rates
Use our free mortgage calculator to see how today’s interest rates will affect your monthly payments.
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What is a mortgage rate?
A mortgage interest rate is a fee for borrowing money from a lender, expressed as a percentage. For example, you may take out a mortgage for $200,000 with an interest rate of 2.75%. You’ll repay interest along with the amount you borrow, so you’ll pay back more than $200,000.
How are mortgage rates determined?
In general, mortgage rates tend to be high when the US economy is thriving and low when it is struggling. Mortgage rates have been at all-time lows as the coronavirus pandemic impacts the country.