Current Mortgage Rates, June 22, 2022 | Prices tend higher

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In 2022, after nearly two years of record-low interest rates, mortgage rates rose to near levels not seen since the pandemic.
Refinancing or buying your home doesn’t have to be put on hold. Although interest rates are higher than in 2021, 30-year fixed rates are still close to where they were a few years ago.

The fact is, a homebuyer’s decision involves much more than just an interest rate. It’s a lifestyle choice. Despite the interest rate market’s impact on mortgages, basing your decision on just a few basis points is not advisable. The most important thing is to set a realistic home buying budget and stick to it.

Let’s look at current mortgage rates, historical rates, and what it all means for borrowers.

Looking at today’s mortgage rates, a number of excellent interest rates boasted. Both 30-year fixed-rate mortgages and 15-year fixed-rate mortgages recorded an increase on average. Among adjustable rates, the 5/1 Adjustable Rate Mortgage (ARM) also rose.

Mortgage rates are currently:

Mortgage Rate Forecast: What’s Driving the Change in Mortgage Rates?

The increase in mortgage rates this year is due to a variety of economic factors. Persistently high inflation is a big deal, Jacob Channel, senior economic analyst at LendingTree, told us. The May inflation report shows inflation at 8.6%, the highest in 40 years. In response, the Federal Reserve raised its short-term benchmark interest rate to combat this inflation. The Fed hiked rates by 50 basis points in May and 75 basis points in June as inflation remained higher than expected.

Recently we saw mortgage rates rise after the inflation report and before the Fed’s announcement. “I think what we’re seeing is that lenders were already expecting the Fed to hike interest rates by 75 basis points and they started raising mortgage rates preemptively,” Jacob Channel, Senior Economist, told us at LendingTree.

Financial markets are still reacting to other global factors that may affect the economy, namely China’s COVID lockdown and Russia’s invasion of Ukraine. “We have a lot of factors like this that are pushing mortgage rates up,” says Channel. “Volatility has gone through the roof,” Shashank Shekhar, founder and CEO of InstaMortgage, told us. “The market has adjusted to a new news cycle practically every day.”

Are Current Mortgage Rates Good for Buying a Home?

The year 2022 started with dramatic rate increases. From a historical perspective, however, mortgage rates remain at relatively normal levels.

Due to a combination of limited housing supply and strong demand, house prices have risen significantly from before the pandemic. The higher cost of building homes and massive demand from buyers are also contributing to the rise. This and higher mortgage interest rates make the overall cost of home ownership more expensive for the borrower.

The difference of about half a point can add up to a lot of money on a 30-year mortgage. But it’s best not to try to time the market to get the best mortgage rate. Instead, experts advise focusing on finding the right home and taking action when your personal lifestyle and financial situation indicate the right time.

Interest rates between mortgage lenders can vary significantly. Make sure you shop around between a few different mortgage lenders to make sure you’re getting the best current deal. “The interest rate has a big impact on your monthly affordability as long as you own this house,” Skylar Olsen, chief economist at Tomo, a digital real estate and mortgage company, told us. “It’s actually a critical part of that decision, and to do that, you have to look around.”

Closing Costs & Loan Fees

When you take out a mortgage, you should consider the closing cost of the loan when making your decision. Closing costs, including processing fees, prepaid interest, and property taxes, typically account for 3% to 6% of the loan amount. One way to reduce your out-of-pocket expenses is to accept a higher interest rate in exchange for credit from the lender. This strategy can save you money in the short term. So don’t overlook them if you’re planning to sell or refinance your home in five to eight years.

Today’s mortgage refinancing rates

Refinancing got a bit more expensive today as average interest rates on 30-year and 15-year fixed refinance mortgages rose. Short-term 10-year fixed-rate refinancing mortgages also saw growth.

The refinance averages for 30-year, 15-year, and 10-year loans are:

Find out about mortgage rates that suit your individual needs.

Interest rates for 30-year fixed-rate mortgages

On a 30-year fixed-rate mortgage, you’re paying an average of 6.04%, up 7 basis points from seven days ago.

15 year fixed rate mortgage rates

The median interest rate for a 15-year fixed-rate mortgage is 5.30%, up 15 basis points from a week ago.

The monthly rate of a 15-year fixed-rate mortgage will be much higher. So it would be easier to find room in your budget to pay off a 30-year loan every month. However, 15-year loans have some significant advantages: you pay thousands less in interest and pay off your loan much faster.

5/1 ARM courses

A 5/1 ARM averages 4.20%, up 18 basis points from the same time last week.

An adjustable rate mortgage is ideal for people looking to refinance or sell before the interest rate changes. If they don’t, their interest rates could be significantly higher after an interest rate reset.

For the first five years, a 5/1 ARM typically has a lower interest rate than a 30-year fixed-rate mortgage. Keep in mind that depending on how much the interest rate on your loan adjusts, your payment has the potential to increase by a large amount.

How our mortgage rates are calculated

We use Bankrate’s daily rate data for our mortgage rate trends. These overnight rates are based on a specific borrower profile that includes only single-family home loans with a loan-to-value ratio of 80% or better. Bankrate is part of the same parent company as NextAdvisor.

This table contains current average rates based on information provided to Bankrate by lenders across the country:

Prices valid from June 22, 2022.

pro tip

Use our mortgage calculator to see how your monthly mortgage payment will change based on considerations like mortgage interest, down payment, and home insurance.

Mortgage Rate Frequently Asked Questions (FAQ):

How do I get the lowest mortgage rate?

Comparing mortgage quotes is a great way to get the lowest mortgage rate.

The mortgage rate you get depends on a variety of factors that lenders take into account when estimating the likelihood of you paying off your home loan. Your credit rating plays a big part in this decision. And the value of the property compared to the amount of your mortgage is also important. So increasing your down payment can lower your mortgage rate.

But lenders will assess your situation differently. This allows you to provide the same paperwork to three different mortgage lenders and receive mortgage quotes with very different rates and fees.

Is now a good time to fix my mortgage rate?

It is impossible to know in which direction mortgage rates will move from one day to the next. This is why a mortgage interest rate freeze is such a useful tool, as it protects you when interest rates rise. And since interest rates are currently relatively low, you should secure your interest rate as soon as possible.

A rate lock only lasts for a set period of time, typically 30-60 days. If you hit a snag when closing and it seems like your rate lock is about to expire, you should contact your lender. It may be able to extend the rate lock, but you may have to pay a fee for the privilege.

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