Today’s Mortgage and Refinance Rates: June 20, 2022

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The Federal Reserve announced another rate increase of 75 basis points on Wednesday. Jerome Powell, the head of the Federal Reserve, asserts that despite their inability to completely control the causes of inflation, the Fed’s endeavor to combat it without sparking a recession is still feasible. And we don’t believe the growth will end there. 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 fixed5.57%
20-year fixed5.07%
15-year fixed4.62%
7/1 ARM5.17%
5/1 ARM4.79%
30-year FHA4.58%
30-year VA4.85%
This information has been provided by  Zillow.

“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.”

A number of criteria, including the property location, loan size, loan type, occupancy type, property type, loan-to-value ratio, and credit score, might influence the rate, points, and APR. Your actual rate and points may be greater or lower than those quoted, based on information about these factors that are only available after you apply.

Refinance rates today

Mortgage typeAverage rate today
30-year fixed5.49%
20-year fixed5.34%
15-year fixed4.66%
7/1 ARM5.09 %
5/1 ARM4.86%
30-year FHA4.87%
30-year VA4.83%
This information has been provided by  Zillow.

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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