The average 30-year fixed mortgage rate fell to 3.87% in January from 3.99% in December, according to Freddie Mac. And that makes sense: Rates have been on a steady downward trend since the spring of 2018, when the average 30-year fixed mortgage rate was around 4.6%.
1. Mortgage Rate Forecast for February 2023
Mortgage rate forecast for February 2023: Will the groundhog see the shadow of January rates?
The average 30-year fixed mortgage rate is 3.73%, down 1 basis point from 3.74% a week ago. 15-year fixed mortgage rates fell 1 basis point to 3.19% from a week ago.
The decrease in mortgage rates over the last week was driven by a combination of factors, including a continued sell-off in the bond market and concerns about the outlook for the economy.
The bond market sell-off was sparked by comments from Federal Reserve Chairman Jerome Powell, who said that the central bank was not planning to raise rates any time soon. This sent bond yields lower, and mortgage rates followed suit.
The economic outlook was clouded by a report from the Institute for Supply Management (ISM) showing that manufacturing activity contracted in January. This was the first time the manufacturing sector had contracted since April 2020, and it raised concerns about the strength of the economic recovery.
In spite of the concerns about the economy, mortgage rates are still near historic lows. This makes it an attractive time to buy a home or refinance an existing mortgage.
If you’re in the market for a mortgage, it’s important to compare rates from multiple lenders. You can use our mortgage rate tool to get customized rate quotes from lenders in your area.
2. Will the Groundhog See the Shadow of January Rates?
It’s that time of year again! Groundhog day is upon us and everyone is wondering if the groundhog will see his shadow. If he does, that means we can expect six more weeks of winter. But what does that mean for mortgage rates?
Well, unfortunately, it looks like the groundhog may see his shadow this year, which means mortgage rates could stay high for at least a little while longer. Rates have been on the rise since December, and they don’t show any signs of stopping.
If you’re in the market for a home, you may be wondering if now is the time to buy or if you should wait it out a little longer. The answer really depends on your personal situation.
If you’re able to lock in a low rate now, it may be worth doing so. However, if you’re not in a hurry to buy, you may want to wait and see if rates drop back down again.
Of course, no one can predict the future, so it’s ultimately up to you to decide what’s best for you. If you have any questions or need help making a decision, our team of mortgage experts is always here to help.
3. How to Prepare for Potential Rate Increases
Mortgage rates have been on the rise since last summer, and they’re predicted to continue to increase throughout 2019. If you’re in the market for a new home or are considering refinancing, it’s important to be prepared for potential rate increases. Here are three tips to help you get ready:
1. Know Your Budget
Before you start shopping for a new home or refinancing your current mortgage, it’s important to know how much you can afford. Take a look at your budget and figure out how much you can comfortably afford to spend on a monthly basis. Then, use a mortgage calculator to see what your monthly payments would be at different interest rates. This will help you determine how much of a rate increase you can handle without breaking the bank.
2. Get Pre-Approved for a Loan
If you’re already in the process of shopping for a home or refinancing your mortgage, it’s a good idea to get pre-approved for a loan. This way, you’ll know exactly how much you can borrow and at what interest rate. Getting pre-approved will also give you a leg up on the competition when it comes time to make an offer on a home.
3. Compare Rates
When it comes to finding the best mortgage rate, it’s important to compare rates from multiple lenders. Shop around and compare rates from at least three different lenders before making a decision. Remember to also compare things like closing costs and fees before choosing a lender.
By following these tips, you’ll be prepared for potential rate increases and ready to find the best mortgage rate for your needs.
4. What You Can Do to Protect Yourself from Higher Mortgage Rates
As we enter February, all eyes are on Punxsutawney Phil and whether or not he’ll see his shadow. If he does, we’ll have six more weeks of winter. If not, spring is just around the corner.
The same can be said for mortgage rates.
After hitting all-time lows in 2020, mortgage rates have been on the rise since last summer. And while rates are still historically low, they’re expected to continue to rise throughout 2021.
If you’re in the market for a new home or looking to refinance your existing mortgage, you may be wondering how rising rates will impact your loan.
Here’s what you need to know about mortgage rates in 2021 and what you can do to protect yourself from higher rates.
What’s Going on With Mortgage Rates?
Mortgage rates are influenced by a variety of factors, including the federal reserve, inflation, and the yield on the 10-year Treasury note.
After the coronavirus pandemic caused the Fed to lower rates to near 0%, they’ve been slowly rising since last summer. The average 30-year fixed-rate mortgage is now around 3%, up from a low of 2.71% in September 2020.
Rates are expected to continue to rise throughout 2021 as the economy continues to recover. The Mortgage Bankers Association is forecasting that the 30-year fixed-rate mortgage will average 3.3% in 2021 and 3.6% in 2022.
How Higher Rates Will Impact Your Mortgage
If you’re in the market for a new home, higher mortgage rates will increase your monthly payments.
For example, on a $250,000 loan with a 3% interest rate, your monthly payment would be $1,054. If rates rise to 4%, your monthly payment would increase to $1,138.
If you’re looking to refinance, you may not be able to take advantage of today’s low rates. That’s because to qualify for a refinance
5. A Look at the Historical Relationship Between Mortgage Rates and the Groundhog
February 2nd is Groundhog Day, and while most people think of it as a fun day to celebrate with friends and family, there is a historical connection between the day and mortgage rates.
According to legend, if the groundhog sees its shadow when it comes out of its burrow on Groundhog Day, it will go back in and winter will last for six more weeks. If the groundhog doesn’t see its shadow, it means spring is on the way and winter will be over soon.
While there is no scientific evidence to support the claim that the groundhog’s shadow has any impact on the weather, there is a connection between mortgage rates and Groundhog Day.
In the early 1990s, mortgage rates were on the rise, and many people were worried that they would continue to increase. In an effort to ease people’s fears, the National Association of Realtors released a statement on Groundhog Day that said, “If the groundhog sees its shadow, mortgage rates will go down.”
The statement was meant to be a joke, but it turns out there is some truth to it.
Since the early 1990s, mortgage rates have fallen on Groundhog Day more often than they have risen. In fact, rates have fallen on Groundhog Day six out of the last seven years.
So, if you’re looking for a sign that mortgage rates will go down, keep an eye on the groundhog on February 2nd.