![]() ![]() Ideally, the Fed will hike rates just enough to slow demand - and reduce prices - without landing in a recession. In response, the Federal Reserve has raised its federal funds rate from zero to 5.00%, increasing the cost of borrowing money across the board.īy making it more expensive to borrow money via higher interest rates, the goal is to curb consumer spending. Mortgage rates are roughly twice what they were a year ago, pushed up by persistently high inflation. Here’s what you need to know about mortgage rates, how they work and how to find the best deal for you. Regardless of what mortgage rates do next, it’s always important to compare offers from different lenders to find the lowest rates and most amenable loan terms. ![]() That’s a decrease of 13 basis points (0.13%) from the previous week. The current rate for a 30-year fixed mortgage sits at 6.48%, as of April 26, according to CNET’s sister site, Bankrate. But incoming inflation data could sway mortgage rates in either direction, Kushi adds. “A 25-basis point hike may be partially baked into mortgage rates,” says Odeta Kushi, deputy chief economist at First American Financial Corporation. While the Fed won’t make its decision official until May 3, experts often have a good idea what’s coming, and how it might affect mortgage rates. Given that inflation has been making steady downward progress though, it’s possible that the Fed will opt to pause hiking rates as soon as next week. After that, the central bank is expected to hold rates where they are until they see inflation reach its 2% target. If the Fed announces a rate increase next week, it’s likely to be by just 25 basis points, or 0.25%, and potentially, the last one of this current cycle. Inflation was at 5.0% in March, down significantly from its peak last summer. Since March 2022, the central bank has been raising interest rates in an attempt to tamp down inflation - and it’s working. “The market is going to react pretty quickly in either direction.” “After the decision, all eyes are going to be on the commentary from Fed Chairman Jerome Powell and whether he signals it’s time to pause or if he leaves rate hikes on the table as a possibility for June,” says Scott Haymore, head of capital markets and mortgage pricing at TD Bank. ![]() The outcome could have an impact on mortgage rates, but what the central bank has to say about its decision will matter more. The Federal Reserve will meet next week to determine whether to raise interest rates further or to hold them steady. Adjustable rate mortgage calculator ARM loan calculatorsĪdjustable-rate mortgage calculator - ARM loan calculators Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Adjustable-Rate Mortgage Calculator Calculate your adjustable mortgage payment Adjustable-rate mortgages can provide attractive interest rates, but your payment is not fixed.Mortgage rates slid this week, but where they go next will depend on the outcome of the Federal Reserve’s May meeting. ![]()
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