Today’s Mortgage and Refinance Rates: June 20, 2022
Last Wednesday, the Federal Reserve announced another 75 basis point rate hike. According to Federal Reserve Chair Jerome Powell, the Fed’s attempt to deal with inflation without causing a recession is still possible, even though they cannot control all the factors causing it. And we don’t think the increases will stop there.
The largest increase since 1987 averaged 5.78% last week for a 30- year fixed mortgage which is even 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 type||Average rate today|
“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.”
With inflation going up again (highest since 1981), mortgage rates increased too. The U.S. Department of Labor – Bureau of Labor Statistics has just released a press release reporting that: “The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.0 percent in May on a seasonally adjusted basis after rising 0.3 percent in April.” The Consumer Price Index (CPI) is a measure of how much prices for goods and services have changed 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.”
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 type||Average rate today|
|7/1 ARM||5.09 %|
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.