Today’s Mortgage and Refinance Rates: June 30, 2022

Interest rates

Mortgage rates have somewhat fallen from the previous week, but they are still far higher than they were two years ago. This has a significant impact on home purchases and the real estate industry in general. 

“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 fixed5.40%
20-year fixed4.93%
15-year fixed4.52%
7/1 ARM5.18%
5/1 ARM4.86%
30-year FHA4.85%
30-year VA4.88%
This information has been provided byZillow.

“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.”

Along with inflation, which is now at its highest level since 1981, mortgage rates increased. The Consumer Price Index for All Urban Consumers (CPI-U) increased by 1.0 percent on a seasonally adjusted basis in May after increasing by 0.3 percent in April, according to a news release from the U.S. Department of Labor’s Bureau of Labor Statistics. The rate of change in the price of goods and services over time is monitored by the Consumer Price Index (CPI).

“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 fixed5.33%
20-year fixed5.05%
15-year fixed4.57%
7/1 ARM5.13%
5/1 ARM4.87%
30-year FHA4.76%
30-year VA4.77%
This information has been provided byZillow.

To decide how much interest you’ll pay and if your rate might fluctuate in the future, you can pick between a fixed-rate mortgage and an adjustable-rate mortgage. A fixed-rate mortgage’s interest rate is fixed for the duration of the loan. If you had a 30-year mortgage, the interest rate you pay today and in 30 years would be the same.

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