Today’s mortgage and refinance rates, June 24, 2022

National mortgage rates were mostly down compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed and jumbo loans decreased, while rates for adjustable rate mortgages rose.

Rates accurate as of June 24, 2022.

These rates are marketplace averages based on the assumptions indicated here. Actual rates available on-site may vary. This story has been reviewed by in-house editor Bill McGuire. All rate data accurate as of Friday, June 24th, 2022 at 7:30 a.m.

You can save thousands of dollars over the life of your mortgage by getting multiple offers.

“All too often, some homeowners take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming,” says Mark Hamrick, Bankrate senior economic analyst. “But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”

Mortgage rates

30-year mortgage eases, -0.13%

The average rate you’ll pay for a 30-year fixed mortgage is 5.81 percent, a decrease of 13 basis points over the last seven days. This time a month ago, the average rate on a 30-year fixed mortgage was lower, at 5.29 percent.

At the current average rate, you’ll pay $584.21 per month in principal and interest for every $100,000 you borrow. That’s $7.65 lower, compared with last week.

How do I view personalized 30-year mortgage rates?

Use the loan widgets on this page or head to our primary rates page to see what kind of rates are available in your situation. You just need to give us a little information about your finances and where you live. With that data, Bankrate can show you real-time estimates of mortgages available to you from a number of providers.

15-year mortgage rate moves down,-0.14%

The average rate you’ll pay for a 15-year fixed mortgage is 5.05 percent, down 14 basis points from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $539 per $100k borrowed. That may put more pressure on your monthly budget than a 30-year mortgage would, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more rapidly.

5/1 ARM rate climbs, +0.20%

The average rate on a 5/1 ARM is 4.29 percent, adding 20 basis points from a week ago.

Adjustable-rate mortgages, or ARMs, are home loans that come with a floating interest rate. In other words, the interest rate can change from time to time throughout the life of the loan, unlike fixed-rate loans. These loan types are best for those who expect to sell or refinance before the first or second adjustment. Rates could be much higher when the loan first adjusts, and thereafter.

While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.

Monthly payments on a 5/1 ARM at 4.29 percent would cost about $489 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.

Jumbo mortgage rate drops, -0.12%

is 5.77 percent, down 12 basis points from a week ago. This time a month ago, the average rate for jumbo mortgages was below that, at 5.26 percent.

At the average rate today for a jumbo loan, you’ll pay a combined $584.21 per month in principal and interest for every $100k you borrow. That’s lower by $7.65 than it would have been last week.

Summary: How mortgage interest rates have changed

  • 30-year fixed mortgage rate: 5.81%, down from 5.94% last week, -0.13
  • 15-year fixed mortgage rate: 5.05%, down from 5.19% last week, -0.14
  • 5/1 ARM mortgage rate: 4.29%, up from 4.09% last week, +0.20
  • Jumbo mortgage rate: 5.77%, down from 5.89% last week, -0.12

Mortgage refinance rates

30-year fixed-rate refinance retreats, –0.14%

The average 30-year fixed-refinance rate is 5.80 percent, down 14 basis points since the same time last week. A month ago, the average rate on a 30-year fixed refinance was lower, at 5.22 percent.

At the current average rate, you’ll pay $584.21 per month in principal and interest for every $100,000 you borrow. Compared with last week, that’s $7.65 lower.

Mortgage rate trends: Where rates are headed

Mortgage rates plunged early in the pandemic and scraped record lows — below 3 percent — at the start of 2021. The days of sub-3 percent mortgage interest on the 30-year fixed are behind us, and rates rose past 5 percent in 2022.

“Low interest rates were the medicine for economic recovery following the financial crisis, but it was a slow recovery so rates never went up very far,” says Greg McBride, CFA, Bankrate chief financial analyst. “The rebound in the economy, and especially inflation, in the late pandemic stages has been very pronounced, and we now have a backdrop of mortgage rates rising at the fastest pace in decades.”

Comparing different mortgage terms

The 30-year fixed mortgage is the most popular loan for homeowners. This type of loan has a number of advantages, including:

  • Lower monthly payment: Compared to a shorter term, such as 15 years, the 30-year mortgage offers lower payments spread over time.
  • Stability: With a 30-year mortgage, you lock in a consistent principal and interest payment. Because of the predictability, you can plan your housing expenses for the long term. Remember: Your monthly housing payment can change if your homeowners insurance and property taxes go up or, less likely, down.
  • Buying power: With lower payments, you can qualify for a larger loan amount and a more expensive home.
  • Flexibility: Lower monthly payments can free up some of your monthly budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.
  • Strategic use of debt: Some argue that Americans focus too much on paying down their mortgages rather than adding to their retirement accounts. A 30-year fixed mortgage with a smaller monthly payment can allow you to save more for retirement.

That said, shorter term loans have gained popularity as rates have been historically low. Although they have higher monthly payments compared to 30-year mortgages, there are some big benefits if you can afford the upfront costs. Shorter-term loans can help you achieve:

  • Greatly reduced interest costs: Because you pay off the loan faster, you’ll be able to pay less interest overall.
  • Lower interest rate: On top of less time for that interest to compound, most lenders price shorter-term mortgages with lower rates.
  • Build equity faster: The faster you pay off your mortgage, the faster you’ll own value in your home outright. That’s especially handy if you want to borrow against your property to fund other spending.
  • Debt-free sooner: A shorter-term mortgage means you’ll own your house free and clear sooner than you would with a longer-term loan.

Are mortgage rates going up?

Throughout 2021, mortgage rates are expected to begin rising again. The National Association of Realtors expects rates to average 3.1% and the Mortgage Bankers Association (MBA) says mortgage rates will average 3.3% in 2021. These rate estimates are both up from the 3.0% mortgage rate average in 2020 but lower than 2019’s average rates. Many experts say it could be years before mortgage rates return to their pre-pandemic levels.

Sources:

  • National Association of Real Estate Editors
  • Freddie Mac Federal Home Loan Mortgage Corporation

Learn more:

Today’s featured lenders, June 24, 2022

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