July Interest Rate Update
In an effort to stem inflation, the Fed announced on Wednesday that it is raising the Federal Funds rate by .75%. The benchmark short-term rate is at its highest level since 2018. While these intentional rate increases have dramatically pushed up short-term interest rates, the 10-year Treasury (the benchmark for long-term fixed rates) has moderated over the past month. Since climbing to a peak of 3.48% on June 13th, the 10-year treasury closed at 2.675% today. It is interesting to put rates in perspective by looking at the charts below.
The current market for fixed-rate loans looks like the following:
- 3-year fixed from 4.00-5.00%
- 5-year fixed from 4.00-5.00%
- 10-year fixed from 4.25-5.25%
- 15-year fixed from 4.25-5.25%
- 20-year fixed from 4.50-5.50%