Mortgage rates are currently lower than in June and July, but some volatility remains. This week, the average 30-year fixed-rate mortgage rate rose to 5.22%, according to Freddie Mac. Last week, that rate plunged below 5% for the first time since early April.
Interest rate fluctuations are likely to continue as the current economic uncertainty continues. But we may not see as many dramatic changes as we have in recent months.
“While inflation has driven the rise in interest rates in recent months, key residential property benchmarks are pointing to relative stability, suggesting that the market as a whole remains healthy, although activity has cooled and remains lower than last year said Robert Heck, vice president of mortgage at Morty.
Current mortgage rates
Current refinancing rates
Use our free mortgage calculator to see how today’s mortgage rates would affect your monthly payments. By entering different interest rates and terms, you will also understand how much you will pay over the life of your mortgage.
Your estimated monthly payment
- Pay a 25% you would save yourself a higher down payment $8,916.08 on interest charges
- interest rate reduction 1% would save you $51,562.03
- pay surcharge $500 each month would shorten the loan term 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
According to Freddie Mac, the current average interest rate for 30-year fixed-rate mortgages is 5.22%. This is an increase from last week when it was 4.99%. This is the first week this rate has increased after two consecutive weeks of declines.
The 30-year fixed-rate mortgage is the most common form of home loan. With this type of mortgage, you pay back what you borrowed over 30 years, and your interest rate does not change over the life of the loan.
The long term of 30 years allows you to spread 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 have a higher rate than with shorter terms or adjustable rates.
15 year fixed mortgage rates
The average 15-year fixed-rate mortgage rate is 4.59%, up from the previous week, according to data from Freddie Mac. Last week, that rate was 4.26%.
If you want the predictability of a fixed interest rate but want to spend less interest over the life of your loan, a 15-year fixed-rate mortgage may be right for you. Because these terms are shorter and have lower interest rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you have a higher monthly rate than with a longer term.
5/1 Adjustable Mortgage Rates
The average 5/1 mortgage rate is 4.43%, up from the previous week. Prior to this week’s increase, that rate had been down for three straight weeks.
Adjustable rate mortgages can be very attractive to borrowers when interest rates are high because interest rates on these mortgages are typically lower than interest rates on fixed-rate mortgages. A 5/1 ARM is a 30-year mortgage. You receive a fixed price for the first five years. After that, your tariff will be adjusted once a year. If the rates are higher when you adjust your rate, you’ll have a higher monthly payment than when you started.
If you’re considering an ARM, make sure you understand how much your interest rate could increase with each adjustment, and how much it could ultimately increase over the life of the loan.
Are mortgage rates rising?
Mortgage rates started rising from historic lows in the second half of 2021 and have risen significantly so far in 2022. More recently, interest rates have been relatively volatile.
In the last 12 months, the consumer price index rose by 8.5%. The Federal Reserve has been working to bring inflation under control and plans to raise the federal funds rate three more times this year after raising it in March, May, June and July.
While not directly tied to the federal funds rate, mortgage rates are sometimes pushed higher as a result of Fed rate hikes and investor expectations of how those increases will affect the economy.
Inflation remains high but has gradually slowed, which bodes well for mortgage rates and the broader economy.
How do I find personalized mortgage rates?
Some mortgage lenders allow you to adjust your mortgage rate on their websites by entering your down payment amount, zip code, and credit rating. The resulting rate isn’t set in stone, but it can give you an idea of what you’ll be paying.
When you’re ready to start buying houses, you can apply for pre-approval from a lender. The lender takes out a hard loan and looks at the details of your finances to secure a mortgage rate.
How do I compare mortgage rates between lenders?
You can apply for prequalification from multiple lenders. A lender will take a general look at your finances and give you an estimate of the rate you will pay.
As you get further along in the home buying process, you have the option to apply for pre-approval from multiple lenders, not just one company. By receiving letters from more than one lender, you can compare personalized rates.
Applying for pre-approval requires a hard credit pulldown. Try to apply to multiple lenders within a few weeks because if you combine all of your hard loans into the same time period, it will hurt your credit score less.