Today’s Mortgage and Refinance Rates: May 09, 2022
Today, all of the major mortgage rates increased. Rates on 30-year fixed and 15-year fixed mortgages both increased. The average rate of 5/1 adjustable-rate mortgages also increased (ARM).
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 type||Average rate today|
|10-year fixed||4.7 %|
|7/1 ARM||4.81 %|
|5/1 ARM||4.60 %|
|30-year VA||5.3 %|
The average rate on a 30-year fixed mortgage is 5.60% with an APR of 5.62%, according to Bankrate.com. The 15-year fixed mortgage has an average rate of 4.79% with an APR of 4.83%. On a 30-year jumbo mortgage, the average rate is 5.51% with an APR of 5.53%. The average rate on a 5/1 ARM is 3.78% with an APR of 4.91%.
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.
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.