Here are today’s mortgage rates, May 11, 2022 | Prices moved higher

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If you look at today’s mortgage rates, the outstanding interest rates have increased by an inch. Average values ​​for both 30-year fixed-rate mortgages and 15-year fixed-rate mortgages have been pushed up. The most common type of adjustable rate mortgage is the 5/1 Adjustable Rate Mortgage (ARM), which has also been increased.

It’s only been 15 months since the average 30-year mortgage rate fell to a record low, but recently the same type of lending topped 5% for the first time in more than a decade. And mortgage rates could be pushed up. In an attempt to rein in inflation, the Fed has raised short-term interest rates by 0.5% and is expected to announce more hikes this year. This could have an indirect effect on mortgage rates and cause them to rise even further.

With interest rates rising, the real estate market could cool down a bit compared to the rising real estate prices of the last two years. However, the housing stock remains low so there will be continued competition for buyers who could still face bidding wars.

No need to put your plans on hold, just get back to basics. Home prices and interest rates matter, at the end of the day your monthly mortgage payment is what matters most. Stay within your home buying budget and limit your housing expenses (including property taxes and insurance) to no more than 28% of your pre-tax income. Be sure to shop around for the best deal on your mortgage so you can limit your fees and secure the best possible interest rate no matter what the market is doing.

Here’s where prices are right now, how they’re moving, and what you need to know about today’s market.

Take a look at today’s prices:

Mortgage Rate Forecast: Why Are Mortgage Rates Changing?

Mortgage rates have been in a general upward trend for over a year and have made a big jump in the last few months.

As the economy recovered from the COVID-19 pandemic, low interest rates led to higher spending. At the same time, problems in the supply chain led to shortages of items such as microchips, building materials and certain foods. These factors combined drove up inflation as supply failed to meet demand. According to the latest Consumer Price Index (CPI), 12-month inflation hit 8.5% in March, the highest level since 1981.

Added to this is inflationary pressures from Russia’s invasion of Ukraine, which has disrupted some financial markets. This war could also contribute to global food shortages as agricultural, fuel and fertilizer supplies from these countries are limited or disrupted.

On the fringes of all of this sits the COVID-19 pandemic, while the number of cases was declining in early 2022, which could be about to change. If we see a resurgence of COVID, it could make the global economy more uncertain.

Are Current Mortgage Rates Good for Buying a Home?

Recent increases in mortgage rates have not reached historically high levels, although they have risen dramatically.

Not long ago, cheap interest rates helped offset rising home prices. Now that interest rates are well above their all-time lows, buyers may need to consider adjusting their home buying budgets.

Despite the importance of mortgage rates, trying to time the market to lock in a good rate is not a reliable strategy. If you can afford it and your goal is to own a home, the real estate or mortgage interest markets need not get in your way. It is possible to find what you want in a home at a price you can afford by broadening your home search. Don’t forget that mortgage rates are not fixed and vary widely from lender to lender. By comparing offers from a handful of lenders, you can find the offer with the lowest fees and best interest rate.

Why is it important to look at the history of 30-year fixed-rate mortgages?

Not too long ago, a “good” interest rate was around 5%, which is roughly where it is today. Current mortgage rates shouldn’t stop you from buying a home, even if they break the psychological 5% barrier.

This chart using data from a Freddie Mac survey that differs slightly but is generally consistent with the Bankrate survey used by NextAdvisor. It provides an insight into today’s prices compared to the last two decades.

What you should know about loan fees

The collective term for the fees you pay to get a mortgage is closing costs. The fees for your appraisal, title insurance, and any lender fees are part of your closing costs. Specific closing costs vary by loan size, but overall you can pay 3% to 6% of the total loan balance. It’s important to be mindful of the closing costs you will have to pay, because the higher your closing costs, the higher your annual percentage rate (APR) will be.

Current mortgage refinancing rates

Refinancing got a bit more expensive today as 30-year fixed and 15-year fixed refinance mortgages saw their median rates rise. Short-term 10-year fixed-rate refinance mortgages eased.

The average refinancing rates are as follows:

Compare nationwide home loan interest rates from different lenders.

Mortgage interest for 30 years

For a 30-year fixed-rate mortgage, the average interest rate is 5.57%, up 7 basis points from last week.

15-year mortgage rates

The median interest rate on a 15-year fixed-rate mortgage is 4.81%, up 10 basis points from seven days ago.

The monthly payment on a 15-year fixed-rate mortgage is undoubtedly a much higher monthly payment than you would get on a 30-year mortgage at the same rate. However, 15-year loans have some significant advantages: you save thousands of dollars in interest and pay off your loan much faster.

5/1 adjustable rate mortgage rates

A 5/1 ARM has an average rate of 3.83%, up 6 basis points from seven days ago.

An ARM is ideal for people looking to sell or refinance before the rate changes. If they don’t, their interest rates could end up being noticeably higher after an interest rate reset.

For the first five years, a 5/1 ARM typically has a lower interest rate than a 30-year fixed-rate mortgage. Keep in mind that depending on how much the interest rate on your loan adjusts, your payment has the potential to increase by a large amount.

This is how we calculate our mortgage interest rates

NextAdvisor’s average mortgage rates are pulled from Bankrate overnight interest rate data. These daily interest rates are based on a specific personal profile that includes only single-family home loans with an 80% LTV or better. Bankrate is part of the same parent company as NextAdvisor.

This table contains current average rates based on information provided to Bankrate by lenders across the country:

Updated May 11, 2022.

pro tip

Use our mortgage calculator to see how your monthly payment will change based on items like your mortgage rate, property taxes, or down payments.

Mortgage Rate Frequently Asked Questions (FAQ):

How can I get the best mortgage rate?

Getting loan offers from a small number of lenders is a good way to secure the lowest interest rate.

The mortgage rate you get depends on a variety of factors that lenders take into account when assessing the likelihood that you can make your mortgage payments over the long term. Your credit rating affects your mortgage rate. And even the value of the property compared to your mortgage balance is important. So increasing your down payment can lower your mortgage rate.

But lenders will look at your circumstances differently. This allows you to provide the same paperwork to three different lenders and receive offers with three different mortgage rates and fees that vary just as widely.

Should I fix my mortgage rate now?

Mortgage rates move up and down daily and it is impossible to time the market. So it’s a good idea to freeze your interest rate now because overall interest rates are historically cheap.

A rate lock only lasts for a set period of time, typically 30-60 days. If you hit a snag when closing and it seems like your rate lock is about to expire, you should contact your lender. It may be possible to extend the rate lock, but you may have to pay a fee for this privilege.

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