Today’s Mortgage, Refinance Rates: June 3, 2022

The average 30-year fixed rate decreased for the third week in a row, according to Freddie Mac, and is now sitting at 5.09%. For much of 2022, rates have been skyrocketing — but they now appear to be stabilizing somewhat and have held steady for the past few days.

Whether this current trend will hold depends on what happens with inflation and how the


Federal Reserve

responds to rising prices. The central bank started raising the federal funds rate in March in an effort to slow inflation. It’s expected to continue along this path with 0.50% rate hikes at its June and July meetings. Though not directly tied to mortgage rates, increases to the federal funds rate often cause mortgage rates to tick up.

“If inflation were to spiral out of control and spur the Fed to take even more aggressive action, rates could rise to a level that could send demand and affordability into a steeper downward spiral than the decrease we’re seeing currently,” says Robert Heck , vice president of mortgage at Morty. “That said, current market indicators are not projecting interest rate levels in the next ten years to reach a level that would send mortgage benchmarks above 7%. This, and other market indicators, suggests that we’ll settle in at these rate levels and adjust to these rates as a new norm.”

Today’s Mortgage Rates

Today’s refinance rates

Mortgage calculator

Use our free mortgage calculator to see how today’s mortgage rates will affect your monthly and long-term payments.

Mortgage Calculator

1,161
Your estimated monthly payment

  • Paying a 25% higher down payment would save you $8,916.08 on interest charges
  • Lowering the interest rate by 1% would save you $51,562.03
  • Paying an additional $500 each month would reduce the loan length by 146 months

By plugging in different term lengths and interest rates, you’ll see how your monthly payment could change.

Are mortgage rates going up?

Mortgage rates started ticking up from historic lows in the second half of 2021, and may continue to increase throughout 2022.

In the last 12 months, the Consumer Price Index has risen by 8.3%. The Federal Reserve has been working to get inflation under control. It plans to increase the federal funds target rate five more times this year, following increases in March and May.

Though not directly tied to the federal funds rate, mortgage rates are often pushed up as a result of Fed rate hikes. As the central bank continues to tighten monetary policy to lower inflation, it’s likely that mortgage rates will remain elevated.

What do high rates mean for the housing market?

When mortgage rates go up, home shoppers’ buying power decreases, as more of their anticipated housing budget has to go toward paying interest. If rates get high enough, buyers can get priced out of the market completely, which cools demand and puts downward pressure on home price growth.

However, that doesn’t mean home prices will fall — in fact, they’re expected to rise even more this year, just at a slower pace than what we’ve seen recently.

What is a good mortgage rate?

It can be hard to know if a lender is offering you a good rate, which is why it’s so important to get preapproved with multiple


mortgage lender

and compare each offer. Apply for preapproval with at least two or three lenders.

Your rate isn’t the only thing that matters. Be sure to compare both what your monthly costs would be as well as your upfront costs, including any lender fees.

Even though mortgage rates are heavily influenced by economic factors that are out of your control, there are some things you can do to help ensure you get a good rate:

  • Consider fixed vs. adjustable rate. You may be able to get a lower introductory rate with an adjustable-rate mortgage, which can be good if you plan to move before the intro period ends. But a fixed rate could be better if you’re buying a forever home because you won’t risk your rate going up later. Look at the rates your lender offers and weigh your options.
  • Look at your finances. The stronger your financial situation, the lower your mortgage rate should be. Look for ways to boost your credit score or lower your debt-to-income ratio, if necessary. Saving for a higher down payment also helps.
  • Choose the right lender. Each lender charges different mortgage rates. Picking the right one for your financial situation will help you land a good rate.

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