Wells fargo 30 year fixed rate mortgage

failure

Get a call back

from one of our lending specialists

By submitting this form, you authorize Bank of America to contact you at the telephone number or email provided here, even if you’ve previously registered on a Do Not Call registry or requested that we not send you marketing information by email. You agree we may use an auto-dialer to reach you. You understand that you are not required to consent to receiving autodialed calls/texts as a condition of purchasing any Bank of America products or services. Any cellular/mobile telephone number you provide may incur charges from your mobile service provider.

Rates based on a $200,000 loan in ZIP code 95464

Rates based on a $200,000 loan in ZIP code 95464

Rate

The rate of interest on a loan, expressed as a percentage.

Annual percentage yield (APR)

The annual cost of a loan to a borrower. Like an interest rate, an APR is expressed as a percentage. Unlike an interest rate, however, it includes other charges or fees (such as mortgage insurance, most closing costs, points and loan origination fees) to reflect the total cost of the loan.

Points

An amount paid to the lender, typically at closing, in order to lower the interest rate. Also known as mortgage points or discount points. One point equals one percent of the loan amount (for example, 2 points on a $100,000 mortgage would equal $2,000).

Monthly Payment (estimated)

The estimated monthly payment includes principal, interest and any required mortgage insurance (for borrowers with less than a 20% down payment). The payment displayed does not include amounts for hazard insurance or property taxes which will result in a higher actual monthly payment. If you have an adjustable-rate loan, your monthly payment may change once every six months (after the initial period) based on any increase or decrease in the Secured Overnight Financing Rate (SOFR) index, published daily by the New York Fed. Note: Bank of America is not affiliated with the New York Fed. The New York Fed does not sanction, endorse, or recommend any products or services offered by Bank of America.

Fixed-rate mortgage

A home loan with an interest rate that remains the same for the entire term of the loan.

Adjustable-rate mortgage (ARM)

Also called a variable-rate mortgage, an adjustable-rate mortgage has an interest rate that may change periodically during the life of the loan in accordance with changes in an index such as the U.S. Treasury-Index (T-Bill) or the Secured Overnight Financing Rate (SOFR) published daily by the New York Fed. Bank of America ARMs generally use SOFR as the basis for ARM interest rate adjustments. Note: Bank of America is not affiliated with the New York Fed. The New York Fed does not sanction, endorse, or recommend any products or services offered by Bank of America.

Your monthly payment may fluctuate as the result of any interest rate changes, and a lender may charge a lower interest rate for an initial portion of the loan term. Most ARMs have a rate cap that limits the amount of interest rate change allowed during both the adjustment period (the time between interest rate recalculations) and the life of the loan.

We need additional information

In order to provide you with the best possible rate estimate, we need some additional information. Please contact us in order to discuss the specifics of your mortgage needs with one of our home loan specialists.

We offer a wide range of loan options beyond the scope of this calculator, which is designed to provide results for the most popular loan scenarios. If you have flexible options, try lowering your purchase price, changing your down payment amount or entering a different ZIP code.

Topline

Despite mortgage rates falling for the first time since mid-August, experts are warning the higher borrowing costs that have tanked the housing market this year could stick around for at least another year—and perhaps even longer, depending on how the Federal Reserve’s battle against inflation pans out in the coming months.

Rates have climbed so much that the average monthly mortgage payment has climbed by $840, or 56%, ... [+] over the past year alone.

Key Facts

The average rate on a 30-year fixed mortgage ticked down 4 basis points to 6.66% last week, falling for the first time in six weeks as a result of ongoing economic uncertainty, Freddie Mac reported Thursday morning.

Despite the decline, the mortgage giant noted that rates remain “quite high,” compared to when they were at less than 3% one year ago—contributing to rising housing costs that have driven up the average monthly mortgage payment by $840, or 56%, over the past year.

In a Wednesday note, Wells Fargo economist Charlie Dougherty pointed out the rising mortgage costs are mostly attributable to the Fed’s aggressive tightening campaign, and that though the central bank doesn’t directly control mortgage rates, it does influence ten-year Treasury yields that sway borrowing costs.

The “fiercely hawkish” Fed is one reason Dougherty expects mortgage rates will remain above 6%—still double what they were one year ago—through the fourth quarter of 2023, and even if inflation subsides enough to allow the Fed to tone down its interest rate hikes, the economist still believes mortgage rates will likely remain above 5% throughout 2024.

Though underlying demand remains strong, higher financing costs are likely to “weigh heavily” on housing activity over the next several years, especially as unemployment rises to help achieve the Fed’s inflation goals, the economist warns.

As a result, Wells Fargo projects existing home sales will fall to 4.7 million in 2023 (on an annualized basis), down from a peak of nearly 6.5 million this year; it also says housing supply faces a similarly “daunting” outlook since many home buyers refinanced at rates just over 5% last year, making them unlikely to sell their homes while rates remain elevated.

Contra

One bright spot for buyers: Wells Fargo projects the housing market downturn will help home prices fall 5.5% in 2023, with high amounts of regional variation pulling down the prices of some pandemic hot spots the most.

Key Background

The Fed’s interest rate hikes have hit the housing market hard, but recent data has shown a potential—and perhaps temporary—respite. New home sales unexpectedly surged much more than economists projected in August; however, data has also shown prices collapsing due to a dearth in demand. In a statement, John Fish, the CEO of building giant Suffolk Construction, said the volatility in home sales is a “possible indicator we are in the early stages of a recession,” though he added it’s “too soon to predict how long or severe” the recession could be.

What To Watch For

Mortgage rates will likely drop by 30 to 50 basis points over the next couple of weeks, predicts research firm Pantheon Macro, noting that they tend to lag ten-year Treasury yields. However, those yields have surged by about 20 basis points since Tuesday, making it unclear how long the decline may last.

Further Reading

Housing Market Collapse Could Push Home Prices Down 20% In Major Markets Like Dallas And Los Angeles, Experts Predict (Forbes)

Home Buyers Getting 9% Less Space Than Last Year Thanks To Spiking Mortgage Rates (Forbes)

Housing Market Volatility Flashes ‘Early Signs’ Of Recession (Forbes)

Follow me on Twitter or LinkedIn. Send me a secure tip. 

What is the 30

What is the fixed rate on a 30

Will interest rates go down in 2022?

What is the interest rate on a 30