Today's 30-year mortgage interest rate: down slightly, but still high!
Today, September 18, 2023, the average interest rate for a 30-year fixed mortgage is 7.51%, down from 7.55% a week ago. While this is a slight decline, it is still significantly higher than the rates that were available just a few months ago.
The recent rise in mortgage rates is due to a number of factors, including inflation and the Federal Reserve's efforts to combat it. The Fed has been raising interest rates in an effort to slow the economy and bring inflation down. These rate hikes have also made it more expensive for banks to borrow money, which has led to higher mortgage rates.
Despite the high rates, there are still some homebuyers who are able to qualify for mortgages. If you are considering buying a home, it is important to speak with a mortgage lender to discuss your options and get pre-approved for a loan. This will give you a good idea of how much you can afford to borrow and what your monthly payments will be.
Here are some tips for buying a home in a high-interest rate environment:
Get pre-approved for a mortgage. This will give you a good idea of how much you can afford to borrow and what your monthly payments will be.
Shop around and compare rates from multiple lenders. Mortgage rates can vary significantly from lender to lender, so it is important to shop around and compare rates to get the best possible deal.
Consider a shorter-term mortgage. Shorter-term mortgages typically have lower interest rates than longer-term mortgages. However, they also have higher monthly payments.
Make a larger down payment. A larger down payment will reduce the amount of money you need to borrow and your monthly payments.
Be prepared to compromise. You may need to compromise on the size, location, or features of your home in order to afford it in a high-interest rate environment.
Buying a home in a high-interest rate environment can be challenging, but it is still possible. By following the tips above, you can increase your chances of finding a home that you can afford and love.