The 15-year mortgage rate is rising at an alarming rate

It is useful to know what can influence the evolution of mortgage rates. Besides your own personal factors such as credit rating, personal income, and the amount of down payment you are able to afford, external circumstances also affect your loan rate. Factors such as the state of the economy and the influence of the Federal Reserve can contribute to lower or higher rates, according to Time.

Information provided by the Federal Reserve of economic data shows a decline and then a rapid rise in 15-year mortgage rates in just a few years. The drop in mortgage rates from 2% to 3% in 2020 and 2021 was largely due to the hit the economy took from the COVID-19 pandemic. With unemployment rising in 2020 – according to figures collected by the US Bureau of Labor Statistics – mortgage rates have fallen to help homeowners at risk of not being able to pay monthly mortgage payments, according to Forbes; it could also encourage refinancing to ease the financial burden of higher monthly payments.

With inflation on the rise, people can expect higher costs for things like food, gas and housing, according to The New York Times. For the latter, that means higher mortgage rates. For 15-year mortgage rates, it appears to be hovering around 5%, a far cry from the lower rates of just a few years ago.

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