Today’s Mortgage Refinance Rates: July 17, 2022

Mortgage rates have been trending higher for the past few days and remain high today. Last week, the average interest rate on 30-year fixed-rate mortgages rose to 5.51% after falling for two straight weeks. While that’s below the recent peak of 5.81%, rates are still at levels not seen since 2008.

High inflation has helped push up mortgage rates this year. That


federal reserve

has raised the federal funds rate to combat price growth, but many experts now fear the central bank won’t be able to control inflation without turning the economy into a


recession

. If the US goes into recession, mortgage rates could actually trend down a bit.

Mortgage rates today

Mortgage refinancing rates today

mortgage calculator

Use our free mortgage calculator to see how today’s mortgage rates are affecting your monthly and long-term payments.

mortgage calculator

$1.161
Your estimated monthly payment

  • Pay a 25% you would save yourself a higher down payment $8,916.08 on interest charges
  • interest rate reduction 1% would save you $51,562.03
  • pay surcharge $500 each month would shorten the loan term by 146 Months

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

Are mortgage rates rising?

Mortgage rates started rising from historical lows in the second half of 2021 and may continue to rise throughout 2022. This is partly due to high inflation and policy responses to rising prices.

In the last 12 months, the consumer price index rose by 9.1%. The Federal Reserve has been working to bring inflation under control and plans to raise the federal funds rate four more times this year after raising it in March, May and June.

While not directly tied to the federal funds rate, mortgage rates are often pushed up as a result of Fed rate hikes. As the central bank continues to tighten monetary policy to bring down inflation, it is likely that mortgage rates will remain high.

What do high rates mean for the housing market?

When mortgage rates rise, homebuyers’ purchasing power falls because more of their expected housing budget has to be devoted to paying interest. If interest rates get high enough, buyers can be squeezed out of the market entirely, dampening demand and putting pressure on home price growth.

However, that doesn’t mean house prices will fall – in fact, they’re expected to rise even more this year, just at a slower pace than in recent years.

Even with fewer buyers in the market, those who can afford will still be competing for historically low inventory. When there are more buyers than houses, house prices rise. Although conditions may ease somewhat due to high interest rates, we are unlikely to see a significant price drop.

What is a good mortgage rate?

It can be difficult to know if a lender is offering you a good interest rate, which is why getting several pre-approved is so important


mortgage banks

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

Your fare isn’t the only thing that matters. Be sure to compare both your monthly costs and your upfront costs, including any lender fees.

Although mortgage rates are heavily influenced by economic factors beyond your control, there are some things you can do to ensure you’re getting a good rate:

  • Consider fixed vs adjustable rates. You may be able to get a lower introductory rate with an adjustable rate mortgage, which can be good if you want to move before the end of the introductory period. But a fixed rate might be better if you’re buying a forever home because you don’t risk your interest rate going up later. Look at the interest rates your lender is offering and weigh your options.
  • Look at your finances. The better your financial situation, the lower your mortgage rate should be. Look for ways to improve your credit score or reduce your debt-to-income ratio, if necessary. Saving up for a higher down payment also helps.
  • Choose the right lender. Each lender charges different mortgage rates. Choosing the right one for your financial situation will help you get a good interest rate.

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