Mortgage and Refinancing Rates Today: June 7, 2022

The 30-year fixed-rate mortgage has been hovering around 5% for several weeks now, indicating that rates may have peaked and are stabilizing at their current levels.

While it’s good news for homebuyers that prices are no longer rising significantly, they are still significantly higher than they were this time last year. This has calmed the market somewhat.

“As the market tries to stabilize at higher price levels, buyer demand has gradually declined as consumers assess what their affordability looks like,” says Robert Heck, vice president of mortgages at Morty. “However, things are very different from market to market and the inventory situation is still dire in many locations, which can still drive demand.”

Current Mortgage Rates

Current refinancing rates

Mortgage Calculator

Use our free mortgage calculator to see how today’s mortgage rates will affect your monthly payments. By connecting different rates and lengths, you will also understand how much you will pay over the entire term of the mortgage.

Click “More Details” for tips on how to save money on your mortgage for the long term.

Fixed mortgage rates for 30 years

The average current 30-year fixed mortgage rate is 5.09%, according to Freddie Mac. This is the third consecutive week that this rate has declined, although it is still about 2% higher than the average rate of 3.11% at the end of 2021.

A 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 for the life of the loan.

The extended term of 30 years allows you to spread your payments over an extended period of time, which means you can keep your monthly payments low and more manageable. The trade-off is that you will have a higher rate than you would with shorter periods or adjustable rates.

Fixed Mortgage Rates for 15 Years

The average 15-year fixed-rate mortgage is 4.32%, up very slightly from the previous week, according to Freddie Mac data. Prior to this last week, that average rate had been steadily declining.

If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, then 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 get a higher monthly payment than you get in the long run.

1/5 adjustable mortgage rates

The average 5/1 adjustable mortgage rate is 4.04%, down from the previous week.

Adjustable rates of mortgages can seem very attractive to borrowers when the rates are high, because the rates on these mortgages are usually lower than fixed mortgage rates. 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 the rates are higher when you adjust your rates, you will get a higher monthly payment than you started with.

If you’re considering ARM, make sure you understand how much your rate will rise each time it adjusts and how much will eventually increase over the life of the loan.

Are Mortgage Rates Rising?

Mortgage rates began to rise from historical lows in the second half of 2021, and may continue to rise throughout 2022. This is largely due to rising levels of inflation and the policy response to higher prices.

In the past 12 months, the consumer price index has increased by 8.3%. The

Federal Reserve

It has been working to control inflation, and plans to raise the federal funds target rate five more times this year, after a 0.25% increase at the March meeting and a 0.5% increase in May.

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.

How do I find personal mortgage rates?

Some mortgage lenders let you customize your mortgage rate on their websites by entering your

push down

Amount, postal code and

Balance level

. The resulting rate is not fixed, but it can give you an idea of ​​what you will be paying.

If you are ready to start shopping for homes, you can apply for pre-approval from a lender. The lender makes a tough credit pull and looks into the details of your money to secure the mortgage rate.

How do I compare mortgage rates between lenders?

You can apply for pre-qualification with many lenders. The lender takes an overview of your money and gives you an estimate of the rate you will pay.

If you are far away in the home buying process, you have the option of applying for pre-approval with several lenders, not just one company. By receiving messages from more than one lender, you can compare personal rates.

Applying for pre-approval requires a difficult credit withdrawal. Try to apply with multiple lenders in a few weeks, because accumulating all of your hard credit in the same amount of time will hurt your credit score even less.