Mortgage Rate is the interest rate for a loan either to buy houses or for refinancing purposes, and there are several rates, the most common ones being the 30-year fixed rate, which is provided by the Freddie Mac on a weekly basis. Lower Mortgage Rates have been in the past boosted the demand for new or existing homes and also for refinancing existing loans. Higher interest rate hikes by the Fed, may increase the average Mortgage Rate in the futures, as the Fed funds rate acts as a benchmark interest rate for the broader economy. There are also many other mortgage rates which are popular, like the 15-year fixed mortgage rate, the 20-year fixed or the 10-year fixed. There are also variable mortgage rates, but in an environment of rising interest rates, the consumers are better to choose a fixed interest rate, and avoid further interest rate increases in the future, a scenario which applies to the variable interest rates.
The United States Mortgage Rate
The United States Mortgage Rate used as reference is the 30-year fixed interest rate, as the houses are considered an important economic asset and also as a long-term investment by the consumers. The latest release for the 30-year Mortgage Rate is at 3.96%, with a long-term average of 8.20%, and an increase of 13.79% from one year ago. The first value for the 30-year fixed Mortgage Rate was 7.33% in 1971. While during 2016 this interest rate was in decline, in 2017 it shows an uptrend, and it could move higher depending on the monetary policy of the Federal Reserve Bank.
