Yesterday the average 30 year mortgage interest rate hit a “generational” high. Most mortgage lenders are quoting the 30 year fixed mortgage interest rate at 7.50% or higher. This is rate not seen in the last 22 years. Ouch.
The rate is for the “average” borrower, meaning that borrowers with lower credit scores are seeing rates even higher than this. Many lenders are also quoting rates now with points to “buy down” the rate. A point is equal to one percent of the loan amount. It is an added fee that a borrower can pay and get a slightly lower rate. One point usually buys the interest rate down around 3/8%.
Will things get better? Unfortunately there is nothing on the horizon to indicate that. And most experts in the market are predicting high rates the remainder of this year and into 2024, with no real substantial rate relief until 2025.