Get Ready for a Lift: Mortgage and Refinance Rates on July 24, 2023
Recent data compiled by Bankrate has revealed a notable jump in national mortgage rates across all loan types when compared to last week’s figures. The surge in rates affected 30-year fixed, 15-year fixed, 5/1 ARMs, and jumbo loans.
This change follows the Federal Reserve’s decision in mid-June to hold off on increasing interest rates, marking a departure from the previous trend of 10 consecutive rate increases across 2022 and 2023. This decision has led to a divide among housing economists. The burning question now is – does the pause signify the end of the Fed’s battle against inflation, or is it merely a brief respite?
The Federal Reserve has long held a goal of maintaining 2 percent inflation. Lisa Sturtevant, chief economist at Bright MLS, a large multiple listing service in the Middle Atlantic region, believes that this indicates the Federal Reserve will likely recommence rate hikes. She shared, “The Fed has been forthright and consistent in their commitment to achieving this inflation goal. It seems highly improbable they would deviate from it now.”
Sturtevant further predicts a potential resumption of rate increases at the next meeting of the Federal Reserve. She warns this could enhance the possibility of a mild economic recession in the near future, potentially by the end of the current year or at the start of the next.
The rates reported are based on Bankrate’s overnight average rates and rely on the assumptions made here. It’s important to note that actual rates available across the site may differ. Suzanne De Vita has reviewed and validated this story for accuracy. All rate data is confirmed as accurate as of Monday, July 24th, 2023, at 7:30 a.m.
Remember, the potential for significant savings over the lifespan of your mortgage can be unlocked through soliciting multiple offers. Research by mortgage giant Freddie Mac found that comparing mortgage offers from different lenders became an especially critical task during the interest rate surge of 2022. Indeed, diligent bargain hunters saw their payoffs double last year.
Mark Hamrick, senior economic analyst for Bankrate, emphasized the importance of not taking the easy route when seeking a mortgage. He notes, “Homebuyers sometimes choose convenience due to the inherently stressful and complex nature of home buying. However, when you consider the substantial savings on the table, it’s clear that investing a bit more time and effort in shopping for the best rate or the lowest cost on a mortgage can yield an excellent return. After all, why let potential savings slip away when all it takes is a little more diligence in your mortgage hunt?”
