Today’s Mortgage, Refinancing Rates: June 23, 2022

The average 30-year fixed mortgage rate rose to 5.78% last week, a significant increase from 5.23% the week before. According to Freddie Mac, this is the largest one-week price increase since 1987. Average 15-year fixed and 5/1 adjustable rates also saw significant increases.


Federal Reserve

met last week to vote for a 75 basis point, or 0.75%, increase in the federal fund rate. After the release of the Consumer Price Index report last week, which showed that inflation was worsening, markets began to estimate the likelihood that the central bank would vote for a more-than-expected rate hike. This pushed up mortgage rates.

“With the Fed announcing a 75 basis point hike, the largest since 1994, we can expect it to continue.”


over the next few days and weeks as the market continues to reprice and attempt to settle at these rate levels,” said Robert Heck, vice president of mortgages at Morty.

Rates may not continue to rise drastically this way, but they will likely remain relatively high through 2022.

Mortgage interest today

Mortgage Refinance Rates Today

Mortgage calculation

Use our free mortgage calculator to see how current mortgage rates will affect your monthly and long-term payments.

Mortgage calculation

Your Estimated Monthly Payment

  • pay a 25% higher deposit would save you! $8,916.08 on interest charges
  • Reduction of interest by 1% would you save $51,562.03
  • Pay extra $500 each month would reduce the length of the loan by 146 months

By entering different maturities and interest rates, you can see how your monthly payment might change.

Will mortgage rates go up?

Mortgage rates started rising from an all-time low in the second half of 2021 and may continue to rise in 2022. This is partly due to high inflation and the policy response to rising prices.

In the past 12 months, the consumer price index rose by 8.6%. The Federal Reserve has done its best to contain inflation and plans to raise the Federal Funds target four more times this year, following increases in March, May and June.

While not directly linked to federal fund rates, mortgage rates are often pushed up as a result of Fed rate hikes. As the central bank continues to tighten monetary policy to lower inflation, mortgage interest rates are likely to remain high.

What do high rates mean for the housing market?

When mortgage rates rise, home buyers’ purchasing power declines because a larger portion of their projected housing budget must be spent on paying interest. If rates get high enough, buyers could be priced out of the market entirely, cooling demand and putting downward pressure on home price growth.

That doesn’t mean house prices will fall, however — in fact, they’re expected to rise even more this year, just at a slower pace than what we’ve seen in recent years.

Even with fewer buyers in the market, those who can afford to buy will still compete for historically low inventory. When there are more buyers than there are houses available, house prices rise. So while the conditions may ease a bit due to the high rates, we probably won’t see a significant price drop.

What is a good mortgage interest deduction?

It can be difficult to know if a lender is offering you a good rate, which is why it is so important to get pre-approved with multiple

mortgage lenders

and compare each offer. Request pre-approval from at least two or three lenders.

Your rate isn’t all that matters. Be sure to compare both your monthly fees and your initial fees, including any lenders.

While mortgage rates are heavily influenced by economic factors beyond your control, there are some things you can do to make sure you get a good rate:

  • Consider fixed versus adjustable rates. You may be able to get a lower introductory rate with an adjustable-rate mortgage, which can be good if you plan to move before the introductory period ends. But a flat rate may be better if you’re buying a home forever because you don’t run the risk of your rate going up later. Look at the rates your lender offers and weigh your options.
  • Look at your finances. The stronger your financial situation, the lower your mortgage interest rate should be. If necessary, look for ways to increase your credit score or decrease your debt-to-income ratio. Saving for a higher down payment also helps.
  • Choose the right lender. Each lender charges different mortgage interest rates. By choosing the right one for your financial situation, you can get a good rate.

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