Current Mortgage Interest Rates on Jun 9, 2022: Rates Move Upward
A variety of major mortgage rates climbed today. The average interest rates for both 15-year fixed and 30-year fixed mortgages both crept higher. For variable rates, the 5/1 adjustable-rate mortgage also climbed higher.
Mortgage rates have been slowly rising since the start of this year, and are expected to increase throughout 2022. Rates are now closer to 2018 levels than the historic lows seen during the height of the pandemic. Interest rates are dynamic — they rise and fall on a daily basis depending on economic factors.
In general, now is a good time for prospective homebuyers to lock in a lower rate rather than later this year. Speaking with multiple lenders will help you find the best rate available for your financial situation.
30-year fixed-rate mortgages
The 30-year fixed-mortgage rate average is 5.54%, which is an increase of 8 basis points as seven days ago. (A basis point is equivalent to 0.01%.)Thirty-year fixed mortgages are the most common loan term. A 30-year fixed rate mortgage will usually have a smaller monthly payment than a 15-year one — but often a higher interest rate.
You won’t be able to pay off your house as quickly and you’ll pay more interest over time, but a 30-year fixed mortgage is a good option if you’re looking to minimize your monthly payment.
15-year fixed-rate mortgages
The average rate for a 15-year, fixed mortgage is 4.75%, which is an increase of 6 basis points from the same time last week.You’ll definitely have a bigger monthly payment with a 15-year fixed mortgage compared to a 30-year fixed mortgage, even if the interest rate and loan amount are the same. However, as long as you can afford the monthly payments, there are several benefits to a 15-year loan. These include usually being able to get a lower interest rate, paying off your mortgage sooner, and paying less total interest in the long run.
5/1 adjustable-rate mortgages
A 5/1 adjustable-rate mortgage has an average rate of 3.91%, a rise of 1 basis point compared to a week ago.For the first five years, you’ll usually get a lower interest rate with a 5/1 ARM compared to a 30-year fixed mortgage.
But since the rate shifts with the market rate, you may end up paying more after that time, as described in the terms of your loan.For borrowers who plan to sell or refinance their house before the rate changes, an ARM could be a good option. Otherwise, shifts in the market means your interest rate could be significantly higher once the rate adjusts.
Mortgage rate trends
Although 2022 kicked off with low mortgage rates, there has been an increase in recent months, and rates will likely continue increasing throughout 2022. Home loan rates are influenced by different economic factors.
A major one is government policy set by the Fed, which raised rates by half a percentage point in May 2022, the highest increase in 22 years, in response to record-high inflation. This was the second rate increase by the Fed and several more are expected throughout the year. So, if you’re looking to buy a house in 2022, expect mortgage rates to keep moving up.We use data collected by Bankrate, which is owned by the same parent company as CNET, to track rate changes over time.
This table summarizes the average rates offered by lenders across the US:
Average mortgage interest rates
| 30-year fixed | 5.54% | 5.46% | +0.08 |
| 15-year fixed | 4.75% | 4.69% | +0.06 |
| 30-year jumbo mortgage rate | 5.53% | 5.46% | +0.07 |
| 30-year mortgage refinance rate | 5.53% | 5.42% | +0.11 |
Rates as of Jun.
9, 2022.
How to shop for the best mortgage rate
To find a personalized mortgage rate, talk to your local mortgage broker or use an online mortgage service. Make sure to think about your current finances and your goals when trying to find a mortgage.Things that affect what mortgage interest rate you might get include: your credit score, down payment, loan-to-value ratio and your debt-to-income ratio. Having a higher credit score, a higher down payment, a low DTI, a low LTV, or any combination of those factors can help you get a lower interest rate.Beyond the mortgage rate, additional costs including closing costs, fees, discount points and taxes might also impact the cost of your home.
Be sure to shop around with multiple lenders — like credit unions and online lenders in addition to local and national banks — in order to get a mortgage that’s right for you.
How does the loan term impact my mortgage?
When picking a mortgage, you should consider the loan term, or payment schedule. The mortgage terms most commonly offered are 15 years and 30 years, although you can also find 10-, 20- and 40-year mortgages. Mortgages are further divided into fixed-rate and adjustable-rate mortgages.
For fixed-rate mortgages, interest rates are fixed for the life of the loan. For adjustable-rate mortgages, interest rates are stable for a certain number of years (most frequently five, seven or 10 years), then the rate changes annually based on the current interest rate in the market.When deciding between a fixed-rate and adjustable-rate mortgage, you should consider the length of time you plan to live in your home. For those who plan on staying long-term in a new house, fixed-rate mortgages may be the better option.
While adjustable-rate mortgages might have lower interest rates upfront, fixed-rate mortgages are more stable over time.
However you may get a better deal with an adjustable-rate mortgage if you’re only planning to keep your house for a few years.
The best loan term is entirely dependent on your personal situation and goals, so make sure to take into consideration what’s important to you when choosing a mortgage.
