Today’s Mortgage and Refinance Rates: June 28, 2022

Interest Rates

Compared to last week, mortgage rates have slightly decreased, but this is far from what it was two years ago. This affects home buying and the real estate market, in general, a lot. 

“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 fixed5.45%
20-year fixed5.02%
15-year fixed4.63%
7/1 ARM5.21%
5/1 ARM4.94%
30-year FHA5.07%
30-year VA4.79%
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.”

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.

Refinance rates today

Mortgage typeAverage rate today
30-year fixed5.39%
20-year fixed5.16%
15-year fixed4.66%
7/1 ARM5.17%
5/1 ARM4.96%
30-year FHA4.78%
30-year VA4.69%
This information has been provided by  Zillow.

Choose between a fixed-rate mortgage and an adjustable-rate mortgage to determine the amount of interest you’ll pay and whether your rate may change in the future. An interest rate that is fixed throughout the life of a loan is known as a fixed-rate mortgage. The interest rate you would pay if you had a 30-year mortgage will remain the same today as it will in 30 years.

A mortgage with an adjustable rate, or ARM, features rates and payments that are fixed for a set period of time before fluctuating on a regular basis. For instance, a 5/1 ARM (adjustable-rate mortgage) starts off with a fixed rate and then adjusts annually after that. A hybrid rate is also offered right now. Often referred to as a “fixed-period ARM,” a hybrid adjustable-rate mortgage (hybrid ARM) combines the features of fixed-rate and adjustable-rate mortgages. In this type of mortgage, an initial fixed-rate period will be followed by an adjustable-rate period.

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