Today’s Mortgage and Refinance Rates: May 05, 2022

current mortgage rates

The Federal Reserve is likely to raise the federal funds rate by 0.5 percent today. After two years of holding the benchmark rate around zero, the central bank announced its first rate hike in March as part of its goal to curb inflation.

Most experts projected that mortgage rates would rise this year, but they did so much faster than expected, with 30-year fixed loan rates breaking past 5% in April for the first time in more than a decade. 

For more information on getting a grant and also learning about refinance programs, take a look at this.

“I believe the rates being above 5% will become a norm, and I don’t see a significant downward movement in the near future,” says Ralph DiBugnara, president of Home Qualified and senior vice president of Cardinal Financial.

Mortgage rates today

Mortgage typeAverage rate today
30-year fixed5.05%
20-year fixed4.87%
15-year fixed4.18 %
7/1 ARM4.88 %
5/1 ARM4.43 %
30-year FHA4.25%
30-year VA4.42 %
This information has been provided by Zillow. See more mortgage rates on Zillow.

The current average 30-year fixed mortgage rate fell 6 basis points from 5.11% to 5.05% on Thursday, Zillow announced. The 30-year fixed mortgage rate on May 5, 2022, is up 12 basis points from the previous week’s average rate of 4.93%. Additionally, the current national average 15-year fixed mortgage rate decreased 12 basis points from 4.28% to 4.16%. The current national average 5-year ARM rate is down 23 basis points from 4.63% to 4.40%.

Mortgage rates typically vary from lender to lender. A number of factors such as the borrower’s credit history, down payment amount, or the home’s value, as well as inflation, job growth, and other economic factors, affect these rates. So, 2022 has been characterized by rising rates. Many experts think the average rate on this loan will be 3.5 to 4 percent by the end of 2022.

Refinance rates today

Mortgage typeAverage rate today
30-year fixed4.89%
20-year fixed4.58%
15-year fixed4.11 %
7/1 ARM4.52 %
5/1 ARM4.49 %
30-year FHA4.47%
30-year VA4.55%
This information has been provided by Zillow. See more mortgage rates on Zillow.

You can choose between two types of mortgages to determine how much interest you’ll pay and if your rate will change later: a fixed-rate mortgage or an adjustable-rate mortgage. With a fixed-rate mortgage, your interest rate remains the same for the entire life of the loan. If you have a 30-year mortgage, you’ll pay the same rate today as you will 30 years from now. With an adjustable-rate mortgage, commonly referred to as an ARM, rates and monthly payments remain the same for a set period of time, then change periodically. For example, a 5/1 ARM (adjustable-rate mortgage) would have a fixed rate for the first five years of the loan, then change every year after that.

For more information on getting a grant and also learning about refinance programs, take a look at this.

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