Today’s Mortgage and Refinance Rates: July 05, 2022

Mortgage Rates

The Federal Reserve announced an additional 75 basis point rate increase. The head of the Federal Reserve, Jerome Powell, asserts that even though they are unable to completely control the causes of inflation, they can still combat it without causing a recession. And we don’t think the expansion will stop there.

“Mortgage rates will likely move up over the next 30 days. The market should expect rate volatility in a tight range, similar to the energy and momentum of a yo-yo as it unwinds and rewinds. Thirty-year fixed mortgage rates will increase another 0.25% to 0.375% through July and settle in at around 6.5 percent. Comments from any of the seven members of the Board of Governors of the Federal Reserve System over the next 30 days will be hyper-analyzed for clues into what the Fed’s July rate hike will be. The markets have already factored in an increase of no less than 50 basis points and a larger increase will produce mortgage rates over 6.5 percent. The Fed will be looking for multiple signals that inflation is beginning to ease. Key economic indicators to watch will be the gross domestic product (GDP), employment figures, consumer spending, and inflation.” according to Paul Buege, president, and CEO of Inlanta Mortgage.

Mortgage rates today

Mortgage typeAverage rate today
30-year fixed5.16%
20-year fixed4.44%
15-year fixed4.29%
7/1 ARM4.82%
5/1 ARM4.51%
30-year FHA4.24%
30-year VA4.75%
This information has been provided by  Zillow.

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 fixed5.16%
20-year fixed4.82%
15-year fixed4.41%
7/1 ARM4.83%
5/1 ARM4.50%
30-year FHA4.46%
30-year VA4.62%
This information has been provided by  Zillow.

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