• Uncategorised

Current Mortgage Interest Rates on June 17, 2022: Rates Are Trending Higher

A number of mortgage rates soared today. There was a big increase in the interest rate for fixed-rate 30-year mortgages and 15-year fixed rates. The average rate of the most common type of variable-rate mortgage, the 5/1 adjustable-rate mortgage, also cruised higher.

Mortgage rates have been consistently going up since the start of this year, and are expected to keep climbing throughout 2022.

In general, interest rates are dynamic — they rise and fall on a daily basis depending on economic factors, including inflation and the federal funds rate, which the Federal Reserve has already increased three times this year. Because the Fed plans to keep hiking interest rates in order to contain inflation, prospective homebuyers will likely be able to lock in a lower rate now rather than later this year. Interviewing multiple lenders to compare rates and fees will help you find the best option for your financial situation.

Keep in mind that home prices come down not only to interest rates but a variety of factors. While we can’t predict in the long term how the Fed’s policies will impact the housing market, higher rates means that homebuyers will in the short term be dealing with steeper monthly payments.

30-year fixed-rate mortgages

The average interest rate for a standard 30-year fixed mortgage is 5.94%, which is an increase of 36 basis points as seven days ago. (A basis point is equivalent to 0.01%.) The most frequently used loan term is a 30-year fixed mortgage. A 30-year fixed mortgage will typically have a higher interest rate than a 15-year fixed rate mortgage — but also a lower monthly payment.

Although you’ll pay more interest over time — you’re paying off your loan over a longer timeframe — if you’re looking for a lower monthly payment, a 30-year fixed mortgage may be a good option.

15-year fixed-rate mortgages

The average rate for a 15-year, fixed mortgage is 5.19%, which is an increase of 46 basis points from seven days ago. You’ll definitely have a larger 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. But a 15-year loan will usually be the better deal, if you’re able to afford the monthly payments.

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 ARM has an average rate of 4.09%, a climb of 15 basis points compared to last week. You’ll usually get a lower interest rate (compared to a 30-year fixed mortgage) with a 5/1 adjustable-rate mortgage in the first five years of the mortgage. But you may end up paying more after that time, depending on the terms of your loan and how the rate adjusts with the market rate.

Because of this, an ARM might be a good option if you plan to sell or refinance your house before the rate changes. Otherwise, shifts in the market means your interest rate could be much higher once the rate adjusts.

Mortgage rate trends

While 2022 kicked off with low mortgage rates, rates have been increasing over recent months, shattering the historic lows from the start of the pandemic. Rates are rising in response to record-high inflation and recent action by the Federal Reserve, which raised interest rates 0.75 percentage points this month — the highest rate increase since 1994.

As a general rule, when inflation is low, mortgage rates tend to be lower — when inflation is high, rates tend to be higher. Though the Fed does not directly set mortgage rates, the central bank’s policy moves do influence how much you’ll end up paying for your home loan.The Fed has signaled it will continue to raise rates over the course of this year, so if you’re looking to buy a house in 2022, expect mortgage rates to keep trending up. We use rates collected by Bankrate, which is owned by the same parent company as CNET, to track daily mortgage rate trends.

This table summarizes the average rates offered by lenders across the US:

Current average mortgage interest rates

Loan type

Interest rate

A week ago

Change
30-year fixed rate 5.94% 5.58% +0.36
15-year fixed rate 5.19% 4.73% +0.46
30-year jumbo mortgage rate 5.89% 5.57% +0.32
30-year mortgage refinance rate 5.94% 5.58% +0.36

Updated on June 17, 2022.

How to shop for the best mortgage rate

When you are ready to apply for a loan, you can reach out to a local mortgage broker or search online. When looking into home mortgage rates, consider your goals and current financial situation. Things that affect what the interest rate you might get on your mortgage 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. Aside from the mortgage interest rate, additional costs including closing costs, fees, discount points and taxes might also affect the cost of your home. Be sure to shop around with multiple lenders — including credit unions and online lenders in addition to local and national banks — in order to get a loan that’s right for you.

How does the loan term impact my mortgage?

When picking a mortgage, remember to consider the loan term, or payment schedule.

The most common mortgage terms are 15 years and 30 years, although 10-, 20- and 40-year mortgages also exist. Mortgages are further divided into fixed-rate and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are fixed for the duration of the loan.

For adjustable-rate mortgages, interest rates are stable for a certain number of years (typically five, seven or 10 years), then the rate fluctuates annually based on the market rate. One thing to think about when deciding between a fixed-rate and adjustable-rate mortgage is how long you plan on staying in your house. If you 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.

If you aren’t planning to keep your new home for more than three to 10 years, however, an adjustable-rate mortgage may give you a better deal.

The best loan term is entirely dependent on your own situation and goals, so be sure to think about what’s important to you when choosing a mortgage.

Tags:

click-basin listed on couponmatrix.ukdebenhams listed on couponmatrix.ukhaute-florist listed on couponmatrix.ukld-mountain-centre listed on couponmatrix.ukmahabis listed on couponmatrix.ukwhsmith listed on couponmatrix.uk
click-basin listed on couponmatrix.ukOur Click Basin coupons can help you bag all sorts of savings on kitting out your home with basins, taps and more. Specialising in washroom sinks of various shapes and sizes, not having high street retail space or providing kitchen items or extra bathroom products allows the team to focus on quality of product, offering a varied selection of styles and designs, good value for money and a high level of service. Options range from stone and glass basins to countertop models, wall-mounted basins, irregular shapes, tap sets, mirror cabinets and more, with trade orders also catered for. So the next time you're thinking of decking out a bathroom, check out our latest Click Basin coupon codes first. A family-run company, Click Basin specialise in offering a host of sinks to suit any space, along with related products such as taps, plugs, traps and wastes. With the emphasis on providing high-quality items, the team stock brand new, unopened products, unless stated, and inspect them before selling them. A seven-day no-quibble money back guarantee is offered on all purchases, with the team striving to communicate with clients throughout the process. Their products can be tailored to suit most rooms from en-suites to grand master bathrooms, with a wide range of styles available, all with free shipping to mainland UK addresses. The company aims to provide a personal, polite, prompt and professional service, with clients even encouraged to shop around in order to see the sort of value for money offered at Click Basin. A host of 'how to' guides are also available on their site, covering areas as diverse as sink maintenance, oak cabinet care and beyond. So if you're looking for a bit of advice when it comes to bathroom design, have a look at our latest selection of Click Basin promo codes to pick up some savings. If you're looking to get a sink into an awkward corner, or have some grand designs for an opulent master bathroom complete with oak cabinets, then grab one of our Click Basin coupons to save on putting your stamp on the space.
debenhams listed on couponmatrix.ukThere are few retailers more historic and significant in the UK than the legendary department store Debenhams. With well over 200 years of experience bringing top-quality clothing, drapery and furnishings to British customers, Debenhams has established itself as one of the best-known brands in the country. With a Debenhams discount code from us, you can find whatever clothing you need at bargain prices, from elegant and luxurious dresses and coats to cheap and cheerful swimming costumes, you can enjoy Debenhams’ amazing discounts all year round and feel confident and comfortable wherever you go.
haute-florist listed on couponmatrix.ukMake someone’s day with a fresh bouquet from Haute Florist. Seen in British VOGUE, Good Housekeeping and Vanity Fair, these are luxury flowers that deserve to be treasured and put on display. Whether you’re celebrating a new baby or Mother’s Day, Haute Florist has brilliant blooms for every occasion delivered seven days a week. The best thing about using a Haute Florist discount code is that you can treat someone special to stunning seasonal flowers without harming your budget, and maybe even add some champagne gifts to your basket.
ld-mountain-centre listed on couponmatrix.ukThe friendly folks at LD Mountain Centre have a long heritage of supplying top quality outdoor wares for those who love everything from snowboarding to running trails. Stocking a reliable inventory of clothing, footwear and equipment designed to keep you safe and comfortable throughout every step of your journey, an LD Mountain Centre discount code is all an outdoor enthusiast needs to restock for less. Whether you have plans for the occasional hike or a cross-country adventure with friends, get prepared with LD Mountain Centre.
mahabis listed on couponmatrix.ukmahabis has revolutionised the humble slipper, creating a super comfortable, highly durable design that can be worn both inside and outside. Make the most of a mahabis discount code to cut the cost of the premium quality price tag. With a 100% wool lining, adaptable foam footbed and durable hybrid sole, these are slippers like no other - and with plenty of styles to choose from, you’re sure to find the perfect pair for you!
whsmith listed on couponmatrix.ukIn the UK WHSmith is a household name and as it comes ever closer to its bicentenary year, it is as popular now as it ever has been. As a trusted household name, you could snap up a WHSmith discount code and cut the cost of a range of products from books and magazines to stationary and confectionery, WHSmith has a bit of something for everyone.