Today’s mortgage and refinance rates, June 21st, 2022: Rates rise

Daily Mortgage blog
Bankrate Logo

Why you can trust Bankrate

While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for .

Average mortgage rates moved higher for all types of loans 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.

Today’s mortgage interest rates
Loan type Interest rate A week ago Change
30-year fixed rate 6.01% 5.87% +0.14
15-year fixed rate 5.27% 5.01% +0.26
5/1 ARM rate 4.18% 3.95% +0.23
30-year fixed jumbo rate 5.94% 5.88% +0.06

Rates last updated on June 21, 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 Tuesday, June 21st, 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 interest rates

30-year mortgage moves upward, +0.14%

The average rate for a 30-year fixed mortgage is 6.01 percent, up 14 basis points over the last week. A month ago, the average rate on a 30-year fixed mortgage was lower, at 5.38 percent.

At the current average rate, you’ll pay a combined $599.55 per month in principal and interest for every $100k you borrow. That’s an increase of $15.34 over what you would have paid last week.

When to consider a 30-year fixed mortgage

Choosing the right home loan is an important step in the homebuying process, and you have a lot of options. You need to take several factors into consideration, including your credit score, income, down payment amount, budget, and financial goals.

15-year fixed mortgage climbs,+0.26%

The average rate you’ll pay for a 15-year fixed mortgage is 5.27 percent, up 26 basis points from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $547 per $100,000 borrowed. The bigger payment may be a little harder to find room for in your monthly budget than a 30-year mortgage payment would, 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 quickly.

5/1 ARM rises, +0.23%

The average rate on a 5/1 adjustable rate mortgage is 4.18 percent, climbing 23 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 periodically throughout the life of the loan, unlike fixed-rate loans. These types of loans are best for people who expect to refinance or sell 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 4.18 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 interest rate rises, +0.06%

The average rate for a jumbo mortgage is 5.94 percent, up 6 basis points over the last seven days. This time a month ago, the average rate for jumbo mortgages was lesser, 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.

Rate review: How interest rates have changed this week

  • 30-year fixed mortgage rate: 6.01%, up from 5.87% last week, +0.14
  • 15-year fixed mortgage rate: 5.27%, up from 5.01% last week, +0.26
  • 5/1 ARM mortgage rate: 4.18%, up from 3.95% last week, +0.23
  • Jumbo mortgage rate: 5.94%, up from 5.88% last week, +0.06

Interested in refinancing? See rates for home refinance

Current 30 year mortgage refinance rate trends higher, +0.08%

The average 30-year fixed-refinance rate is 5.97 percent, up 8 basis points compared with a week ago. A month ago, the average rate on a 30-year fixed refinance was lower, at 5.37 percent.

At the current average rate, you’ll pay $591.86 per month in principal and interest for every $100,000 you borrow.

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 mortgage terms

The 30-year fixed-rate mortgage is the most popular loan for homeowners. This mortgage has a number of advantages. Among them:

  • 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 rising or falling?

Mortgage rates have fallen to record lows in recent months. Where they’ll go from here is nearly impossible to predict. Much depends on the direction of the economy, and how well public health officials can contain the coronavirus pandemic. The general consensus: If the economy continues to bounce back, and if drugmakers are successful in developing a vaccine, rates will rise. On the other hand, if the economy struggles because of coronavirus-related setbacks, mortgage rates will remain at record lows or fall even further.

What comes next:

Featured lenders for today, June 21, 2022