Mortgage rates have increased in expectation of a Federal Reserve meeting. This meeting is expected to result in an interest rate hike, after the Fed declined to raise rates in June. Potential homebuyers and those looking to refinance are paying close attention to this meeting, as even a small rise in interest rates can affect their borrowing costs.
Current mortgage rates still remain close to their all-time lows, with the average 30-year fixed rate mortgage clocking in at 3.48%. The average 15-year fixed rate mortgage also stands at 2.80%, indicating relatively low interest rates in the market. However, these rates could increase if the Federal Reserve decides to raise its benchmark rate.
The Fed had held off raising interest rates at its meeting in June, citing global economic uncertainties and risks in the underlying inflationary environment. But the Fed has indicated that, despite the current concerns, it would raise the target rate at its September meeting. Mortgage lenders have reacted to this news by increasing their interest rates slightly, as borrowers prepare to take on higher rates in the months ahead.
The decision to raise the target rate at the Federal Reserve meeting will affect many homeowners and those considering refinancing. It is important for these borrowers to remain aware of current mortgage rates and the potential fluctuations in the market in the weeks ahead. Even small changes in the rate can have an impact on the housing market. Homebuyers should take note of current mortgage rates as they plan to purchase or refinance their home in the near future.
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