Mortgage and Refinancing Rates Today: June 9, 2022
Mortgage rates are flat today, with 30-year fixed rates hovering above 5%. Prices have been staying near their current levels for several weeks now, indicating that they may have finally peaked.
Rates have risen dramatically this year in response to inflation and
attempts to tame it. Next week, the Federal Reserve will meet to discuss raising the federal funds rate. So far this year, the Fed has raised that rate twice, starting with a 0.25% increase in March and 0.5% in May.
While mortgage rates are not directly related to the Fed funds rate, they often rise as a result of higher Fed rates. So it is possible that mortgage rates will go up even more.
“If inflation gets out of control and prompts the Fed to take more aggressive action, prices could rise to a level that could send demand and affordability into a downward spiral even steeper than the decline we are currently experiencing,” says Robert Heck. Vice President of Mortgage at Morty. “However, current market indicators do not expect interest rate levels in the next 10 years to reach a level that would send mortgage standards above 7%. This, and other market indicators, suggest that we will stabilize at these rate levels and adapt. With these rates as a new rule.”
Today’s Mortgage Rates
Refinance rates today
Use our free mortgage calculator to see how today’s mortgage rates will affect your monthly and long-term payments.
Estimated monthly payment
- pay 25% It will give you a higher down payment $8,916.08 on interest charges
- Reduce the interest rate by 1% will save you $51.562.03
- Pay extra 500 dollars Each month would reduce the term of the loan by 146 months
By plugging in different time periods and different interest rates, you’ll see how your monthly payment can change.
Are Mortgage Rates Rising?
Mortgage rates started rising from historical lows in the second half of 2021, and may continue to rise throughout 2022.
In the past 12 months, the consumer price index has increased by 8.3%. The Fed has been working to keep inflation under control, and plans to increase the fed funds target rate five more times this year, after increases in March and 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.
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.
However, this does not mean that house 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.
What is a good mortgage rate?
It can be hard to know if a lender is offering you a good rate, which is why it’s important to get pre-approval with several parties.
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.