Mortgage and Refinancing Rates Today: June 22, 2022
Mortgage rates are near 6% today, according to Freddie Mac, after jumping more than 0.50% from the previous week.
Last Wednesday, the Federal Reserve said it would raise the federal funds rate by 75 basis points, or 0.75%. The central bank initially indicated that it plans to enact a 50 basis point increase. But last week’s CPI report showed inflation was accelerating again, so the Fed eventually decided it needed to move more aggressively to combat rising prices.
Mortgage rates are not directly affected by the federal funds rate, but they often go up or down in anticipation of Fed policy decisions and how those decisions might affect the broader economy. As the federal funds rate rises, mortgage rates often follow suit.
The Federal Reserve raised the federal funds rate several times in 2022, and mortgage rates are now 2% higher than they were at the start of the year. Prices may continue to rise over time.
Today’s Mortgage Rates
Today’s Refinance Rates
Use our free mortgage calculator to see how today’s interest rates will affect your monthly 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 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 may continue to rise throughout 2022.
In May, the CPI rose 8.6% year over year. The
It has been working to control inflation, and plans to raise the federal funds target rate four more times this year, after increases in March, May and June.
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 getting pre-approved with multiple parties is important.
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.