Today’s Mortgage and Refinance Rates: June 09, 2022

Interest Rates

Although mortgage rates have been stable in recent weeks, they are still 2% higher than they were a year ago. Homebuyers have little hope due to the high rates and high costs, and it is still unclear what will change in the near future. Nobody benefits from the inflation that is currently rising. Higher interest rates are also a result of the Federal Reserve’s efforts to control this inflation through tighter monetary policy. How high would they climb, then? Will we accept the new rates as normal after adjusting to them?

Mortgage rates today

Mortgage typeAverage rate today
30-year fixed5.17%
20-year fixed4.67%
15-year fixed4.29%
7/1 ARM4.94%
5/1 ARM4.67%
30-year FHA4.20%
30-year VA4.40%
This information has been provided by Zillow.

The current average 30-year fixed mortgage rate climbed 10 basis points from 5.07% to 5.17% on Thursday, Zillow announced. The 30-year fixed mortgage rate on June 9, 2022, is up 20 basis points from the previous week’s average rate of 4.97%. Additionally, the current national average 15-year fixed mortgage rate increased 10 basis points from 4.19% to 4.29%. The current national average 5-year ARM rate is down 3 basis points from 4.70% to 4.67%.

“Aggressive inflation will force the Federal Reserve to raise interest rates multiple rounds this year and actively pursue quantitative tightening,” says Lawrence Yun, chief economist and senior vice president of research at the National Association of Realtors (NAR). “That is why mortgage rates recently have shot up so high. Higher mortgage rates will inevitably pull home sales down in the coming months and slow home price appreciation.”

Refinance rates today

Mortgage typeAverage rate today
30-year fixed4.92%
20-year fixed4.76%
15-year fixed4.12%
7/1 ARM4.93 %
5/1 ARM4.69 %
30-year FHA4.28%
30-year VA4.30%
This information has been provided by Zillow.

To choose how much interest you’ll pay and if your rate may vary later, you can pick between a fixed-rate mortgage and an adjustable-rate mortgage. A fixed-rate mortgage has an interest rate that stays the same throughout the duration of the loan. If you had a 30-year mortgage, the rate you pay today will be the same as it will be in 30 years. An adjustable-rate mortgage, or ARM, has rates and monthly payments that remain constant for a fixed length of time before changing on a regular basis. A 5/1 ARM (adjustable-rate mortgage), for example, has a fixed rate for the first five years and then changes every year after that. There is also a hybrid rate available today. A hybrid adjustable-rate mortgage, or hybrid ARM (sometimes known as a “fixed-period ARM”), combines fixed-rate and adjustable-rate mortgage characteristics. An initial fixed-rate period will be followed by an adjustable-rate period in this form of a mortgage.

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