Inflation Jitters Nudge Mortgage Rates Higher
Photo by Алекс Арцибашев
Zillow's latest update gives us a clear look at where rates stand right now. For example, the popular 30-year fixed mortgage rate is around 6.625%, while a 15-year fixed is closer to 5.625%. And for adjustable rates like a 7-year ARM, you're looking at about 7.375%. These numbers aren't "one size fits all," as they depend on your unique financial picture.
What's influencing these rates? Zillow notes that "inflation jitters" are playing a role, nudging rates slightly higher due to concerns about persistent inflation and its impact on the Federal Reserve's interest rate decisions. Despite these slight upticks, rates have generally been hovering in the 6%-7% range over the past year. This means that while the home shopping season remains a bit sluggish due to lagging buyer demand, there's also accumulating inventory which can give buyers more bargaining power than in recent years. Zillow still expects mortgage rates to end the year near the mid-6% range.
The good news is you have power over your own rate! Zillow highlights that a higher credit score, a larger down payment, and a lower debt-to-income (DTI) ratio can all help you qualify for better mortgage rates. So, even as the market shifts, focusing on these key areas can make a real difference in your homeownership journey.
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The information provided is for educational purposes only and should not be considered credit repair advice or housing counseling services. For credit repair assistance or housing counseling, please consult with appropriate certified professionals or HUD-approved agencies.
Fintech Founder at My Home Pathway. VC Backed Startup. Financial Inclusion Leader and Speaker.
Risk and project management professional with experience in Federal Reserve banking regulations, risk management policies as well as risk management advisory services. Critical skills include credit risk analysis, capital markets, strategic planning, current state assessments and target operating models. Ability to assess evolving regulatory guidelines and potential impact on financial services organizations operationally and strategically.
Mr. Johnson received his Bachelor of Science in Management and International Business from Penn State University where he was a Bunton Waller Scholar and Division 1 athlete and his MBA in Finance and Accounting from New York University.
