Mortgage and Refinancing Rates Today: April 23, 2022

Mortgage rates averaged 5.11% this week, according to Freddie Mac – a 12-year high. While higher rates could lead to a less aggressive buying season this year, the market can still be difficult to navigate, especially for first-time homebuyers and other cash-strapped buyers.

If you’re getting ready to buy a home, it might be a good time to start the process and lock in the price. The

Federal Reserve

It plans to raise the federal funds rate several times this year, which could raise mortgage rates.

“With such volatility happening daily, what you would normally lose would be much more than you could gain by not locking in your interest rate,” says Ralph Debognara, president of Home Qualified and Vice President of Cardinal Financial.

Today’s Mortgage Rates

Today’s Refinance Rates

Mortgage Calculator

Use our free mortgage calculator to see how today’s interest rates will affect your monthly payments:

By clicking on “More details”, you will also see the amount that you will pay over the entire term of the mortgage, including the amount that is paid in principal for interest.

Are Mortgage Rates Rising?

Mortgage rates started rising from historical lows in the second half of 2021, and are likely to continue rising throughout 2022.

In March, the CPI reached an annual rate of 8.5%, the fastest rate of inflation since 1981. The Federal Reserve has been working to control inflation, and plans to increase the fed funds target rate six more times this year, after a 0.25% increase at its meeting in March.

Although not directly related to the federal funds rate, mortgage rates are often raised as a result of higher Fed rates. As the central bank continues to tighten monetary policy to bring down inflation, mortgage rates are likely to remain high.

What do high rates mean for the housing market?

When mortgage rates rise, the purchasing power of home shoppers declines, as a greater portion of the projected housing budget must go to paying interest. If prices rise enough, buyers can exit the market altogether, which cools demand and puts downward pressure on home price growth.

There is such a shortage that even if 50% of people stop searching today, you will still be in high demand. Ralph Debognara, President of Home Qualified and Senior Vice President of Cardinal Financial

However, this does not mean that home prices will fall – in fact, they are expected to rise further this year, at a slower pace than we have seen in the past two years.

Dibognara says that although higher prices are slowing demand, lower inventory will continue to drive prices higher.

“There is such a shortage that even if 50% of people stopped looking today, the demand would still be high,” he says. “So I think because of that demand, you’re going to see prices go up for at least another 18 to 24 months.”

What is a good mortgage rate?

It can be hard to know if a lender is offering you a good rate, which is why getting pre-approved with multiple parties is important.

Mortgage Lenders

And compare each offer. Apply for pre-approval with at least two or three lenders.

Your rate is not the only thing that matters. Be sure to compare both the monthly costs and the initial costs, including any lender fees.

Although mortgage rates are heavily influenced by economic factors beyond your control, there are a few things you can do to help ensure that you get a good rate:

• Consider fixed rates versus adjustable rates. You may be able to get a lower introductory rate with an adjustable mortgage, which can be good if you plan to move before the introductory period ends. But a fixed price may be better if you’re buying a forever home because you won’t risk the price going up later. Look at the rates offered by your lender and weigh your options.
• Look at your money. The stronger your financial position, the lower your mortgage rate. Find ways to increase your credit score or lower your debt-to-income ratio, if necessary. Saving for a higher down payment also helps.
• Choose the right lender. Each lender charges different mortgage rates. Choosing the right option for your financial situation will help you get a good price.