What Determines Mortgage Rates?

Several key factors influence mortgage rates:

  1. Federal Reserve Policy

    • The Fed's monetary policy decisions
    • Federal funds rate changes

  2. Economic Indicators

    • Inflation rates
    • Employment data
    • GDP growth

  3. Market Conditions

    • Housing market trends
    • Supply and demand
    • Bond market performance

Types of Mortgage Rates

Fixed-Rate Mortgages

Fixed-rate mortgages offer stability with consistent monthly payments. Common terms include:

  • 30-year fixed
  • 15-year fixed
  • 20-year fixed

Adjustable-Rate Mortgages (ARMs)

ARMs typically start with lower rates but can adjust over time:

  • 5/1 ARM
  • 7/1 ARM
  • 10/1 ARM

Remember to use our mortgage calculator to estimate your monthly payments.