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    Mortgage Rates Reach 20-Year High: What You Need to Know


    Mortgage rates have been on the rise since August 2021, reaching a 20-year high in late 2022. At this time, the average interest rate for a 30-year fixed-rate mortgage refinance is 7.02%. This is an increase from the 6.83% reported last week[0] According to Bankrate, 15-year, fixed-rate refinance mortgages average of 6.37%, while 20-year mortgage refinance rates average 7.11% and 5/1 adjustable-rate mortgage (ARM) rates average 5.46%.

    With an interest rate of 7.11%, a $300,000, 20-year fixed-rate mortgage refinance would have a monthly payment of $2,346 for principal and interest. [1] The total interest that the borrower would pay over the loan's duration would be approximately $262,979.[1]

    The annual percentage rate on a 15-year fixed is 6.29%, while the average 5/1 ARM APR is currently 5.53%.[0] An ARM mortgage can provide a lower interest rate than a 30-year fixed mortgage for the first five years of the loan.[2] Your loan terms stipulate that a shift in the market could lead to an increase in your interest rate after a certain period of time.[3]

    The Mortgage Banker's Association's latest survey reported that the mortgage loan application volume for the week ending Feb. 17, 2023, decreased by 13.3% compared to the previous week on a seasonally adjusted basis.[4] Mortgage applications were down 56.8% compared to the same period last year.[5]

    The increase in mortgage rates was in part caused by the inflation and the series of rate increases the Federal Reserve put in place in 2022 to try to limit it.[3] In late 2022, mortgage rates reached their highest point in two decades, yet the macroeconomic climate is now shifting once again.

    Joel Kan, MBA's Vice President and Deputy Chief Economist, stated that while this season of the year is usually when buying activity increases, in the past two weeks, rates have gone up drastically as economic markets process information regarding inflation that is cooling more slowly than anticipated.[6]

    For any investor who wants to make wise investment selections, it is crucial to comprehend mortgage rate changes and forecast their future tendencies.[7]

    0. “Compare current mortgage rates – USA Today Blueprint” USA TODAY, 21 Feb. 2023,

    1. “Mortgage Refinance Rates Today: February 22, 2023—Rates Move Up” Forbes, 22 Feb. 2023,

    2. “Today’s mortgage rates for Feb. 21, 2023”, 21 Feb. 2023,

    3. “Mortgage Rates on Feb. 21, 2023: Rates Go Up” CNET, 21 Feb. 2023,

    4. “Mortgage Applications Drop to Lowest Level Since 1995 — Should Sellers Worry?” Yahoo! Voices, 22 Feb. 2023,

    5. “Homebuyers Retreat As Mortgage Rates Jump –” The MReport, 20 Feb. 2023,

    6. “Rising Rates Sideline Home Buyers” Mortgage News Daily, 22 Feb. 2023,

    7. “Understanding the Impact of Mortgage Rates on the Stock Market” Best Stocks, 21 Feb. 2023,

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