Today’s Mortgage and Refinance Rates: May 06, 2022

Today’s Mortgage and Refinance Rates

In recent weeks, we’ve seen the highest rates for 30-year mortgages since 2011. Additionally, mortgage rates may be raised. The Fed has raised short-term rates by 0.5 percent in an effort to keep inflation in check, and more hikes are predicted this year. This may have an indirect effect on mortgage rates, pushing them to climb even more.

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

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. 

“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.

“I still believe we are in a market that is advantageous to buy or own in,” DiBugnara says. “Higher rates mean less buying power in some cases, but rent is rising as fast or faster than home prices because of inflation, making buying the more ideal option for many.”

Mortgage rates today

Mortgage typeAverage rate today
30-year fixed5.17%
20-year fixed4.73%
15-year fixed4.30 %
7/1 ARM4.81 %
5/1 ARM4.60 %
30-year FHA4.42%
30-year VA4.70 %
This information has been provided by Zillow. See more mortgage rates on Zillow.

The current average 30-year fixed mortgage rate climbed 3 basis points from 5.14% to 5.17% on Friday, Zillow announced. The 30-year fixed mortgage rate on May 6, 2022 is up 24 basis points from the previous week’s average rate of 4.93%. Additionally, the current national average 15-year fixed mortgage rate increased 1 basis point from 4.29% to 4.30%. The current national average 5-year ARM rate is equal to 4.56%.

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 fixed5.07%
20-year fixed4.86%
15-year fixed4.24 %
7/1 ARM4.87 %
5/1 ARM4.75 %
30-year FHA4.70%
30-year VA4.43%
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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