Average home interest rate Meaning and Definition
average home interest rate
Pronunciation
Not applicable
Part of Speech
Noun
Definition
A measure of the cost of borrowing money to purchase or refinance a home, typically expressed as a percentage of the loan amount.
Examples
- The average home interest rate for a 30-year mortgage is currently around 3.5%.
- The rise in average home interest rates made it harder for homeowners to refinance their mortgages.
Synonyms
- Mortgage rate
- Loan interest rate
Antonyms
- Mortgage discount
- Loan forgiveness
Additional Information
Average home interest rates can vary depending on factors such as the borrower’s credit score, loan term, and type of mortgage. They are an important consideration for homeowners and potential buyers when evaluating their financing options. The Federal Reserve sets interest rates, which can impact average home interest rates. Understanding interest rates and how they work can help individuals make informed decisions about their mortgage and financial planning.
Average home interest rates can also impact the economy, as changes in interest rates can affect borrowing and spending patterns, influencing the overall pace of the economy.
Etymology
Not applicable
Usage Notes
When referring to an individual’s mortgage, it’s common to use the term “interest rate.” However, when discussing the broader market, using “average home interest rate” provides more context.
Cultural References
Not applicable
Idiomatic Expressions or Phrases
Not applicable
Related Words or Phrases
- Mortgage
- Loan
- Interest
Collocations
- Average home interest rate hike
- Average home interest rate floor
Frequency of Use
Average home interest rate is a commonly used term in financial news and discussions, but its frequency of use can vary depending on market conditions and economic trends.
Common Misspellings
- Gerbera