Today’s Mortgage, Refinance Rates: June 7, 2022

The 30-year fixed mortgage rate has been hovering around 5% for several weeks now, suggesting that rates may have peaked and are settling in at their current levels.

While it’s good news for homebuyers that rates are no longer skyrocketing, they’re still significantly higher than they were this time last year. This has caused the market to cool somewhat.

“As the market tries to settle in at higher rate levels, buyer demand has gradually softened as consumers assess what their affordability looks like,” says Robert Heck, vice president of mortgage at Morty. “That said, things differ greatly market-to-market and the inventory situation remains dire in many locations, which can still drive demand.”

Current mortgage rates

Current refinance rates

Mortgage calculator

Use our free mortgage calculator to see how today’s mortgage rates would impact your monthly payments. By plugging in different rates and term lengths, you’ll also understand how much you’ll pay over the entire length of your mortgage.

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

Click “More details” for tips on how to save money on your mortgage in the long run.

30-year fixed mortgage rates

The current average 30-year fixed mortgage rate is 5.09%, according to Freddie Mac. This is the third week in a row that this rate has fallen, though it’s still up nearly 2% from the average rate of 3.11% at the end of 2021.

The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you’ll pay back what you borrowed over 30 years, and your interest rate won’t change for the life of the loan.

The lengthy 30-year term allows you to spread out your payments over a long period of time, meaning you can keep your monthly payments lower and more manageable. The trade-off is that you’ll have a higher rate than you would with shorter terms or adjustable rates.

15-year fixed mortgage rates

The average 15-year fixed mortgage rate is 4.32%, a very slight increase from the prior week, according to Freddie Mac data. Prior to this most recent week, this average rate had been dropping steadily.

If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you’ll have a higher monthly payment than you would with a longer term.

5/1 adjustable mortgage rates

The average 5/1 adjustable mortgage rate is 4.04%, a decrease from the previous week.

Adjustable rate mortgages can look very attractive to borrowers when rates are high, because the rates on these mortgages are typically lower than fixed mortgage rates. A 5/1 ARM is a 30-year mortgage. For the first five years, you’ll have a fixed rate. After that, your rate will adjust once a year. If rates are higher when your rate adjusts, you’ll have a higher monthly payment than what you started with.

If you’re considering an ARM, make sure you understand how much your rate could go up each time it adjusts and how much it could ultimately increase over the life of the loan.

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. This is in large part due to high levels of inflation and policy response to rising prices.

In the last 12 months, the Consumer Price Index rose by 8.3%. the


Federal Reserve

has been working to get inflation under control, and plans to increase the federal funds target rate five more times this year, following a 0.25% increase at its March meeting and a 0.5% increase in 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.

How do I find personalized mortgage rates?

Some mortgage lenders let you customize your mortgage rate on their websites by entering your


down payment

amount, zip code, and


credit score

† The resulting rate isn’t set in stone, but it can give you an idea of ​​what you’ll pay.

If you’re ready to start shopping for homes, you may apply for preapproval with a lender. The lender does a hard credit pull and looks at the details of your finances to lock in a mortgage rate.

How do I compare mortgage rates between lenders?

You can apply for prequalification with multiple lenders. A lender takes a general look at your finances and gives you an estimate of the rate you’ll pay.

If you’re farther along in the homebuying process, you have the option to apply for preapproval with several lenders, not just one company. By receiving letters from more than one lender, you can compare personalized rates.

Applying for preapproval requires a hard credit pull. Try to apply with multiple lenders within a few weeks, because lumping all of your hard credit pulls into the same chunk of time will hurt your credit score less.

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