There could be a shift in the mortgage rate landscape next month. Here's what rates could look like then.
The mortgage market has been on a wild ride over the last several years. It all started when rates plummeted to historic lows in 2020 and 2021, with 30-year mortgage rates dipping below 3%. As the economy rebounded and inflation surged in the two years following, things changed drastically. The Federal Reserve embarked on an aggressive rate-hiking campaign, which drove up mortgage rates significantly and made it tough to borrow at an affordable rate.
This represents a potential savings of $17,713 in interest over the full term of the mortgage – a significant amount despite the seemingly small monthly difference.For 15-year mortgages, a similar 25 basis point reduction from the current 5.95% could bring rates closer to 5.70%. On a $300,000 loan, this would lower your payments by approximately $40 each month – dropping from $2,523 to $2,483.It would also impact the total interest paid over the life of the 15-year mortgage:At 5.
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