Mortgage interest rates moved higher for all loan terms compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans jumped.
|Loan term||Today’s Rate||Last week||Change|
|30-year mortgage rate||5.94%||5.58%||+0.36|
|15-year mortgage rate||5.19%||4.73%||+0.46|
|5/1 ARM mortgage rate||4.09%||3.94%||+0.15|
|30-year jumbo mortgage rate||5.89%||5.57%||+0.32|
Rates accurate as of June 17, 2022.
The rates listed here are averages based on the assumptions here. Actual rates listed across the site may vary. This story has been reviewed by in-house editor Bill McGuire. All rate data accurate as of Friday, June 17th, 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?”
30-year mortgage increases, +0.36%
The average 30-year fixed-mortgage rate is 5.94 percent, up 36 basis points from a week ago. This time a month ago, the average rate on a 30-year fixed mortgage was lower, at 5.42 percent.
At the current average rate, you’ll pay principal and interest of $591.86 for every $100k you borrow. That’s an additional $22.82 per $100,000 compared to last week.
Learn more about 30-year fixed mortgage rates, and compare to a variety of other loan types.
15-year fixed mortgage rate rises,+0.46%
The average rate you’ll pay for a 15-year fixed mortgage is 5.19 percent, up 46 basis points over the last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $547 per $100,000 borrowed. That’s obviously much higher than the monthly payment would be on a 30-year mortgage at that rate, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more rapidly.
5/1 ARM rate climbs, +0.15%
The average rate on a 5/1 adjustable rate mortgage is 4.09 percent, adding 15 basis points since the same time last week.
Adjustable-rate mortgages, or ARMs, are home loans that come with a floating interest rate. In other words, the interest rate can change intermittently 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 considerably 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 4.09 percent would cost about $482 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan’s terms.
Jumbo mortgage rises, +0.32%
The average jumbo mortgage rate today is 5.89 percent, up 32 basis points over the last seven days. This time a month ago, jumbo mortgages’ average rate was lower, at 5.37 percent.
At the current average rate, you’ll pay principal and interest of $591.86 for every $100,000 you borrow. That’s an extra $22.82 compared with last week.
Recap: How mortgage rates have moved
- 30-year fixed mortgage rate: 5.94%, up from 5.58% last week, +0.36
- 15-year fixed mortgage rate: 5.19%, up from 4.73% last week, +0.46
- 5/1 ARM mortgage rate: 4.09%, up from 3.94% last week, +0.15
- Jumbo mortgage rate: 5.89%, up from 5.57% last week, +0.32
Interested in refinancing? See mortgage refinance rates
30-year mortgage refinance goes up, +0.36%
The average 30-year fixed-refinance rate is 5.94 percent, up 36 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was lower, at 5.33 percent.
At the current average rate, you’ll pay $591.86 per month in principal and interest for every $100,000 you borrow. That’s up $22.82 from what it would have been last week.
Where are mortgage rates 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-rate mortgage is the most popular option for homeowners, and 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.
Where rates are headed
To see where Bankrate’s panel of experts expect rates to go from here, check out our rate trends page.
Want to see where rates are currently? Lenders across the nation respond to our weekday mortgage rates survey to bring you the most current rates available. Here you can see the latest marketplace average rates for a wide variety of purchase loans.
What comes next:
- Loans and programs for first time homebuyers
- Everything to know about FHA loans
- What is mortgage escrow?
- The difference between APR and interest rate
- How to get the best mortgage rate
- Mortgage calculator
- Mortgage lender reviews