Today’s mortgage refinance rates: July 9, 2022
Average mortgage rates fell accordingly this week Freddie Mac. The average interest rate on 30-year fixed-rate mortgages recently hit 5.81%, its highest level since 2008. However, in recent weeks this rate has trended downwards again.
Interest rates have risen significantly this year and are now over two percentage points higher than when 2022 began. Elevated interest rates combined with high home prices have limited affordability for many homebuyers, causing some to exit the market. This has started to cool off demand for home purchases.
Mortgage rates today
Today’s refinancing rates
Use our free mortgage calculator to see how today’s mortgage rates are affecting your monthly and long-term payments.
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.
In the last 12 months, the consumer price index rose by 8.6%. That
is working to bring inflation under control and plans to raise the federal funds target 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.
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
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.