Today’s Mortgage and Refinance Rates: July 01, 2022

Interest rates

For a 30-year fixed mortgage, the biggest increase since 1987 averaged 5.78% last week, which is higher than the week before.

“These higher rates are the result of a shift in expectations about inflation and the course of monetary policy,” said Sam Khater, Freddie Mac’s chief economist. “Higher mortgage rates will lead to moderation from the blistering pace of housing activity that we have experienced coming out of the pandemic, ultimately resulting in a more balanced housing market.”

Mortgage rates today

Mortgage typeAverage rate today
30-year fixed5.37%
20-year fixed4.87%
15-year fixed4.49%
7/1 ARM5.12%
5/1 ARM4.88%
30-year FHA4.62%
30-year VA4.73%
This information has been provided by  Zillow.

“Today’s announcement confirms the Fed’s commitment to fight the inflation battle more aggressively despite the potential aftermath from raising rates at such a rapid pace,” the Allianz Investment Management’s senior investment strategist  Charlie Ripley said. “Overall, Fed policy rates have been out of sync with the inflation story for some time and the aggressive hikes from the Fed should appease markets for the time being.”

Mortgage rates went raised along with inflation, which is now at its highest level since 1981. According to a news release from the U.S. Department of Labor’s Bureau of Labor Statistics, “The Consumer Price Index for All Urban Consumers (CPI-U) jumped 1.0 percent on a seasonally adjusted basis in May after gaining 0.3 percent in April.” The Consumer Price Index (CPI) tracks the rate of change in the cost of goods and services over time.

“Climbing mortgage rates continue to put pressure on the housing market, pushing the cost of homeownership ever higher,” said Hannah Jones, Economic Data Analyst at Realtor.com. “There has been little relief for American consumers at the grocery store, the pump, and in both the for-sale and rental markets.”

Refinance rates today

Mortgage typeAverage rate today
30-year fixed5.09%
20-year fixed4.85%
15-year fixed4.32%
7/1 ARM5.01%
5/1 ARM4.58%
30-year FHA4.67%
30-year VA4.43%
This information has been provided by  Zillow.

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