The Federal Reserve The Fed controls short-term interest rates by increasing them or decreasing them based on the state of the economy. While mortgage rates aren't directly tied to the Fed rates, when the Fed rate changes, the prime rate for mortgages usually follows suit shortly afterward.
LIBOR - current LIBOR interest rates
USD LIBOR - 1 month- 5.43472 %
Term Sofr (%)-30-Day AVG (%)-18 Aug 2023
5.31427
5.24608
Your cost to borrow-08-24-2023
30-yr fixed-8.013%
15-yr fixed-7.125%
10 / 6 ARM-7.595%
What does this mean to you?
A seller who has an interest rate of 3.5% may make 18% profit by selling their home in this market, but when they buy a different home, they will be paying 8.013% interest. on their new loan.
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