Today’s best mortgage and refinance rates, June 22, 2022 | Rates rise

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Mortgage interest rates increased 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 increased.

Current average home loan rates
Loan type Interest rate A week ago Change
30-year fixed rate 6.04% 5.97% +0.07
15-year fixed rate 5.30% 5.15% +0.15
5/1 ARM rate 4.20% 4.02% +0.18
30-year fixed jumbo rate 5.97% 5.96% +0.01

Rates last updated on June 22, 2022.

These rates are averages based on the assumptions here. Actual rates listed on-site may vary. This story has been reviewed by in-house editor Bill McGuire. All rate data accurate as of Wednesday, June 22nd, 2022 at 7:30 a.m.

>>See historical mortgage rate trends

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 goes up, +0.07%

The average rate you’ll pay for a 30-year fixed mortgage is 6.04 percent, up 7 basis points over the last seven days. This time a month ago, the average rate on a 30-year fixed mortgage was lower, at 5.28 percent.

At the current average rate, you’ll pay principal and interest of $599.55 for every $100k you borrow. That’s $7.69 higher compared with last week.

15-year fixed mortgage moves higher,+0.15%

The average rate for the benchmark 15-year fixed mortgage is 5.30 percent, up 15 basis points since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $554 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 quickly.

5/1 adjustable rate mortgage trends higher, +0.18%

The average rate on a 5/1 ARM is 4.20 percent, up 18 basis points since the same time last week.

Adjustable-rate mortgages, or ARMs, are mortgage terms 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 mortgages. These loan types are best for those who expect to refinance or sell before the first or second adjustment. Rates could be materially 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 4.20 percent would cost about $489 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 loan interest rate goes up, +0.01%

The average jumbo mortgage rate today is 5.97 percent, an increase of 1 basis point over the last seven days. Last month on the 22nd, the average rate on a jumbo mortgage was lesser, at 5.22 percent.

At today’s average jumbo rate, you’ll pay $591.86 per month in principal and interest for every $100k you borrow.

Summary: How mortgage rates have changed

  • 30-year fixed mortgage rate: 6.04%, up from 5.97% last week, +0.07
  • 15-year fixed mortgage rate: 5.30%, up from 5.15% last week, +0.15
  • 5/1 ARM mortgage rate: 4.20%, up from 4.02% last week, +0.18
  • Jumbo mortgage rate: 5.97%, up from 5.96% last week, +0.01

Interested in refinancing? See mortgage refinance rates

30-year fixed-rate refinance increases, +0.01%

The average 30-year fixed-refinance rate is 6.00 percent, up 1 basis point over the last week. A month ago, the average rate on a 30-year fixed refinance was lower, at 5.24 percent.

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

Rate trends: 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 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.

How do mortgage rates affect homebuyers?

In this housing boom, mortgage rates have been a mixed bag for buyers. Low rates give borrowers more buying power. A $300,000 loan at 4 percent equates to a monthly payment of $1,432. If rates fall to 3 percent, the payment plunges to $1,265.

One downside, however, is that a significant decline in mortgage rates can help push up home prices. Indeed, home values have increased in recent months.

Here’s one way to see the offsetting effects of soaring home prices and plunging mortgage rates. Say you decided not to buy a $300,000 home a year ago, when the 30-year mortgage rate was at about 3.75 percent. Your down payment at 20 percent would have been $60,000, and your monthly payment would have been $1,111.

The price of the same house has jumped to $335,000 today. However, you can get a 30-year mortgage at 3 percent. As a result, your monthly payment rises only slightly, to $1,130. However, you’ll have to come up with an extra $7,000 to make a 20 percent down payment.

Learn more:

Featured lenders, June 22, 2022