Mortgage rates soared late last week following the release of Consumer Price Index data for May, which showed inflation rising again last month after falling in April. This week, rates have eased slightly, although 30-year fixed mortgage rates are still above 5%.
meets today and is expected to announce a 0.5% increase in the fed funds rate tomorrow. But last week’s CPI report raised concerns that the central bank may choose to act more aggressively in its fight to rein in inflation and instead enact a 0.75% rise, which could boost mortgage rates up.
mortgage rates today
Mortgage Refinance Rates Today
Use our free mortgage calculator to see how current interest rates will affect your monthly payments.
Your estimated monthly payment
- paying a 25% a higher down payment would save you $8,916.08 on interest charges
- Reduce the interest rate on 1% I would save you $51,562.03
- Paying an additional $500 each month would reduce the length of the loan by 146 months
By clicking “More Details,” you’ll also see how much you’ll pay over the life of your mortgage, including how much goes toward principal versus interest.
30-year fixed mortgage rates
The current average 30-year fixed mortgage rate is 5.23%, according to Freddie Mac. After several weeks of declines, this is the first week since mid-May that this rate has increased.
The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you’ll pay back what you borrowed over 30 years, and your interest rate won’t change over the life of the loan.
The long term of 30 years allows you to spread your payments over a long period of time, which means you can keep your monthly payments lower and more manageable. The trade-off is that you will have a higher rate than you would with shorter terms or adjustable rates.
15-year fixed mortgage rates
The average 15-year fixed mortgage rate is 4.38%, up slightly from the previous week, according to data from Freddie Mac.
If you want the predictability that comes with a fixed rate but want to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good option for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you will have a higher monthly payment than with a longer term.
Adjustable Mortgage Rates 5/1
The 5/1 average adjustable mortgage rate is 4.12%, an increase from the previous week.
Adjustable rate mortgages can seem very attractive to borrowers when rates are high, because the rates on these mortgages are often lower than fixed mortgage rates. A 5/1 ARM is a 30-year mortgage. For the first five years, you will have a fixed rate. After that, your rate will be adjusted once a year. If rates are higher when your rate adjusts, you’ll have a higher monthly payment than you started with.
If you’re considering an ARM, make sure you understand how much your rate could increase each time it adjusts and how much it could ultimately increase over the life of the loan.
Will mortgage rates go up in 2022?
To help the US economy during the COVID-19 pandemic, the Federal Reserve aggressively bought assets, including mortgage-backed securities. This helped keep mortgage rates at record lows.
However, the Fed now plans to reduce the assets it holds and is expected to raise the fed funds rate a further five times in 2022, following hikes in March and May.
Average mortgage rates have risen recently, and Federal Reserve announcements indicate mortgage rates may continue to rise in 2022. You may want to lock in a rate now rather than risk a higher rate later, but don’t rush to buy a house if you’re not ready
What is a fixed rate mortgage versus an adjustable rate mortgage?
Historically, adjustable mortgage rates tend to be lower than 30-year fixed rates. When mortgage rates go up, ARMs can start to look like the best deal, but it depends on your situation.
Fixed-rate mortgages lock in your rate for the life of your loan. Adjustable-rate mortgages lock in your rate for the first few years, then your rate goes up or down periodically.
Because adjustable rates start low, they are worthwhile options if you plan to sell your home before the interest rate changes. For example, if you get a 7/1 ARM and want to move out before the seven-year fixed-rate period ends, you won’t risk paying a higher rate later.
But if you want to buy a home forever, a fixed rate might still be a better option, since you won’t risk your rate going up in a few years.