Today’s Mortgage, Refinance Rates: Feb. 11, 2023
Mortgage and refinance rates are on the rise again this week, with the average rate for a 30-year fixed mortgage reaching 3.19%, according to Freddie Mac’s weekly survey of lenders. This is the first time since mid-November that the rate has been this high.
The increase in mortgage rates is due to several factors, including the Federal Reserve’s decision last week to raise the benchmark federal funds rate by a quarter of a percentage point. This increase in the federal funds rate, which is used to set interest rates for mortgages and other loans, is the first of several expected rate hikes this year.
In addition, mortgage rates are being driven higher by strong demand for housing, as well as an increase in home prices. As more buyers enter the market and competition for homes increases, lenders are raising rates to stay competitive.
For those looking to refinance, the news is mixed. While rates are up, the cost of refinancing is still relatively low. According to the Mortgage Bankers Association, the average cost of refinancing is currently 0.38% of the loan amount. This is lower than the long-term average of 0.44%.
Overall, mortgage and refinance rates remain near historic lows, and with the Federal Reserve expected to raise rates further this year, it is likely that mortgage rates will continue to rise in the near future. For those looking to purchase or refinance a home, now may be the time to act before rates go up further.