Current Mortgage Interest Rates on July 20, 2022: Rates Go Up

Some principal mortgage rates grew today. The average 15-year fixed and 30-year fixed mortgage rates both inched up. Average rates for 5/1 adjustable-rate mortgages also were raised.

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

Of course, interest rates are dynamic and unpredictable — at least on a daily or weekly basis — as they respond to a wide variety of economic factors. At the moment, inflation and the federal funds rate are particularly influential. The Federal Reserve has increased interest rates three times this year and has signaled its intention to hike rates again to try to contain inflation.

That will likely translate into higher mortgage rates and, for prospective borrowers, steeper monthly mortgage payments. As such, homebuyers may have better luck locking in a lower mortgage interest rate sooner than later. It’s always a good idea to interview multiple lenders to compare rates and fees to find the best mortgage for your specific situation.

30-year fixed-rate mortgages

The average interest rate for a standard 30-year fixed mortgage is 5.81%, which is an increase of 12 basis points as seven days ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most frequently used loan term.

A 30-year fixed rate mortgage will usually have a lower 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 4.98%, which is an increase of 8 basis points from the same time last week. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and interest rate will have a higher monthly payment.

But a 15-year loan will usually be the better deal, as long as you’re able to afford the monthly payments. You’ll usually get a lower interest rate, and you’ll pay less interest in total because you’re paying off your mortgage much quicker.

5/1 adjustable-rate mortgages

A 5/1 adjustable-rate mortgage has an average rate of 4.26%, a rise of 4 basis points compared to a week ago. With an ARM mortgage, you’ll usually get a lower interest rate than a 30-year fixed mortgage for the first five years.

However, shifts in the market may cause your interest rate to increase after that time, as detailed in the terms of your loan. Because of this, an adjustable-rate mortgage could be a good option if you plan to sell or refinance your house before the rate changes. But if that’s not the case, you might be on the hook for a significantly higher interest rate if the market rates change.

Mortgage rate trends

Though mortgage rates were historically low at the beginning of 2022, they have been climbing somewhat steadily since then.

The Federal Reserve recently raised interest rates by 0.75 percentage points — the highest rate increase since 1994 — in an attempt to curb record-high inflation. 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 actions influence how much you pay to finance your home loan. And 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 generally increase as the year goes on.

We use data collected by Bankrate, which is owned by the same parent company as CNET, to track changes in these daily rates. This table summarizes the average rates offered by lenders nationwide:

Current average mortgage interest rates

Loan type

Interest rate

A week ago

Change
30-year fixed rate 5.81% 5.69% +0.12
15-year fixed rate 4.98% 4.90% +0.08
30-year jumbo mortgage rate 5.78% 5.67% +0.11
30-year mortgage refinance rate 5.74% 5.68% +0.06

Updated on July 20, 2022.

How to shop for the best mortgage rate

You can get a personalized mortgage rate by reaching out to your local mortgage broker or using an online calculator. When looking into home mortgage rates, take into account your goals and current finances.

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. Generally, you want a good credit score, a larger down payment, a lower DTI and a lower LTV to get a lower interest rate. Aside from the mortgage interest rate, other factors including closing costs, fees, discount points and taxes might also impact the cost of your home.

You should shop around with multiple lenders — including credit unions and online lenders in addition to local and national banks — in order to get a mortgage loan that works best for you.

What’s the best loan term?

One important factor to consider when choosing a mortgage is 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 stable for the life of the loan. Unlike a fixed-rate mortgage, the interest rates for an adjustable-rate mortgage are only fixed for a certain amount of time (most frequently five, seven or 10 years). After that, the rate changes annually based on the current interest rate in the market.

When choosing between a fixed-rate and adjustable-rate mortgage, you should consider how long you plan to live in your home. Fixed-rate mortgages might be a better fit if you plan on living in a home for a while. While adjustable-rate mortgages might have lower interest rates upfront, fixed-rate mortgages are more stable over time.

However you might get a better deal with an adjustable-rate mortgage if you only plan to keep your home for a couple years.

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

Tags:

bobbi-brown listed on couponmatrix.ukelvie listed on couponmatrix.ukharvey-nichols listed on couponmatrix.ukpoundshop listed on couponmatrix.ukthe-gym-group listed on couponmatrix.ukvirginmedia listed on couponmatrix.uk
bobbi-brown listed on couponmatrix.ukIf only the creme de la creme of cosmetics will do, treat yourself to a Bobbi Brown beauty haul. Featuring high-quality, luxury makeup, this collection is a favourite of celebrities and makeup artists with each product guaranteed to give your beauty bag a boost. Use a Bobbi Brown discount code from us on an award-winning foundation stick, shimmery illuminating powder or intensive skin serum, and elevate your look to designer status while keeping your bank balance intact.
elvie listed on couponmatrix.ukElvie takes women’s health seriously—but it’s far from boring. Applying cutting-edge technology to breastfeeding and pelvic floor exercises, Elvie’s smart products bring women’s health products into the 21st century. Whether you want to banish mishaps with the app-powered Elvie Trainer or make breastfeeding more convenient with the Elvie Pump, we’ll help you save on whatever you need with our Elvie discount codes at Groupon. Keep checking back for the best codes, Elvie Pump sales and offers available now.
harvey-nichols listed on couponmatrix.ukA household name across the world, Harvey Nichols has been providing customers with luxury fashion, top-level food and award-winning restaurants ever since the 1830s when it was founded by Benjamin Harvey. The department store grew from just a linen shop in a terraced house to a multifaceted business opening up 7 stores in Ireland and the UK, and more overseas - and now houses the very latest in designer goods. Use a Harvey Nichols discount code to get incredible reductions on fashion fresh from the catwalk, high-class cuisine and gorgeous homeware and your debit card will thank you when you head to checkout. Browse by brand on the Harvey Nichols website if you’ve got a trusted favourite and make an appointment at the Knightsbridge store to receive tailor-made service from trained stylists.
poundshop listed on couponmatrix.ukThe ever-rising cost of living all has us in a slump, but with Poundshop you can the same branded products for a pittance and, best of all, delivery can be as little as £1. As expected, most products are £1, but you find snacks, cleaning products and even skincare for less than this in the Poundshop sale section. We’ll help you get the most of your order with our Poundshop discount codes and our round-up of the best deals available now. With an ever-changing stock rotation, you’ll want to pick up what you need in a hurry!
the-gym-group listed on couponmatrix.ukThe Gym Group works hard to create a welcoming space for all fitness abilities – whether you’re a beginner, a gym enthusiast or somewhere in between. There are hundreds of Gym Group gyms across the UK with 24/7 access, so you can drop in when you like and make your workout work for you! Whether you prefer cardio classes or hitting the weights, we’ve got plenty of the Gym Group promo codes to help you save on membership and meet your fitness goals.
virginmedia listed on couponmatrix.ukWhen it comes to entertainment and connectivity, there are few brands better than Virgin Media. With decades of experience providing broadband, mobile and TV deals for customers across the country, a Virgin Media promo code can help you save on a wide array of entertainment. Regardless of if you’re looking for a full media bundle for the whole family or simply need a sim-only deal for your monthly data, you’ll find a package to match at Virgin Media.