The 30-year fixed mortgage rate has been hovering around 5% for several weeks now, suggesting that rates may have peaked and are settling at their current levels.
While it’s good news for homebuyers that rates are no longer skyrocketing, they are still significantly higher than they were this time last year. This somewhat cooled the market.
“As the market attempts to settle at higher rate levels, buyer demand has gradually waned as consumers assess what their affordability looks like,” said Robert Heck, vice president of lending. mortgages at Morty. “That said, things differ significantly across markets and the inventory situation remains dire in many places, which may further boost demand.”
Current Mortgage Rates
Current refinance rates
Use our free mortgage calculator to see the impact of today’s mortgage rates on your monthly payments. By plugging in different rates and terms, you’ll also understand how much you’ll pay over the life of your mortgage.
Your estimated monthly payment
- pay one 25% a higher down payment would save you $8,916.08 on interest charges
- Lower the interest rate by 1% would save you $51,562.03
- Pay an extra fee $500 each month would reduce the term of the loan by 146 month
Click “More Details” for tips on how to save money on your long-term mortgage.
30-year fixed mortgage rates
The current average 30-year fixed mortgage rate is 5.09%, according to Freddie Mac. This is the third week in a row that this rate has fallen, although it is still up almost 2% compared to the average rate of 3.11% at the end of 2021.
The 30-year fixed rate mortgage is the most common type of mortgage. With this type of mortgage, you’ll pay back what you borrowed over 30 years and your interest rate won’t change for the life of the loan.
The 30-year long term allows you to spread your payments out over a long period, which means you can keep your monthly payments lower and more manageable. The tradeoff is that you’ll get a higher rate than with shorter terms or adjustable rates.
15-year fixed mortgage rates
The average 15-year fixed mortgage rate is 4.32%, a very slight increase from the previous week, according to data from Freddie Mac. Prior to this most recent week, that average rate had steadily declined.
If you’re looking for the predictability that comes with a fixed rate, but are looking to spend less on interest over the life of your loan, a 15-year fixed rate mortgage might be right for you. Since 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 you would with a longer term.
5/1 Adjustable Mortgage Rates
The average 5/1 adjustable mortgage rate is 4.04%, down from the previous week.
Variable rate mortgages can seem very attractive to borrowers when rates are high, as rates on these mortgages are generally 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 adjust 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 might increase each time it adjusts and how much it might ultimately increase over the life of the loan.
Are mortgage rates increasing?
Mortgage rates started to recover from historic lows in the second half of 2021 and could continue to rise throughout 2022. This is largely due to high levels of inflation and the policy response to rising prices .
Over the past 12 months, the consumer price index has increased by 8.3%. The
has worked to keep inflation under control and plans to raise the federal funds target rate five more times this year, following a 0.25% increase at its March meeting and a 0.5% increase in May.
Although not directly tied to the federal funds rate, mortgage rates are often pushed higher by Fed rate hikes. As the central bank continues to tighten monetary policy to reduce inflation, mortgage rates are likely to remain high.
How can I find personalized mortgage rates?
Some mortgage lenders allow you to customize your mortgage rate on their websites by entering your
amount, postal code and
. The resulting rate is not fixed, but it can give you an idea of what you will pay.
If you’re ready to start buying homes, you can get pre-approved from a lender. The lender makes a firm credit application and reviews your financial details to lock in a mortgage rate.
How to compare mortgage rates between lenders?
You can apply for prequalification with several lenders. A lender takes a general look at your finances and gives you an estimate of the rate you will pay.
If you’re further along in the home buying process, you have the option of getting pre-approved from multiple lenders, not just one company. By receiving letters from more than one lender, you can compare personalized rates.
The pre-approval request requires a firm credit application. Try to apply to multiple lenders within a few weeks, because consolidating all your hard credits in the same amount of time will hurt your credit score less.