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Current Mortgage Rates, July 21, 2022 | Rates Trending Upward

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Current Mortgage Rates, July 21, 2022 | Rates Trending Upward

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Jason Stauffer

Jason Stauffer

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Jason Stauffer is a personal finance reporter who previously covered the housing and mortgage market for NextAdvisor.…

July 21, 2022 | 7 Min Read

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We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

Nearly two years have gone by with record-low mortgage rates. Now, 2022 has started off with rates rising higher than pre-pandemic levels.

Don’t cancel your home purchase plans just yet. Even though rates are higher than they were in 2021 they are still considered “normal” from a historical perspective. It was only a few short years ago where the 30-year fixed rates were in the high 5%’s.

Homebuying decisions take a lot more consideration outside of the interest rate anyway. Buying a home is about making a lifestyle choice. What’s going on in the interest rate market can influence a decision, it’s wise to not base it solely on a few basis points on a mortgage rate. Setting and sticking to a realistic homebuying budget is way more important than what rate you get.

Let’s take a look at current mortgage rates, where rates have been in the past, and what it all means for the borrower.

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Looking at today’s mortgage rates a variety of rates climbed. The averages for both 30-year fixed and 15-year fixed mortgages both climbed higher. At the same time, average rates for 5/1 adjustable-rate mortgages (ARM) also were raised.

Take a look at today’s rates:

  • 30-year fixed mortgage rates are averaging 5.84%
  • 20-year mortgage rate: 5.79%
  • Today’s 15-year fixed mortgage rate is 5.00%
  • 10-year mortgage rate: 5.00%
  • 5/1 ARM rates are averaging 4.26%

Mortgage Rate Trends: What’s Behind the Recent Rate Movement?

Mortgage rates have increased because of a variety of economic factors so far this year. Persistently high inflation is a big one, Jacob Channel, senior economic analyst at LendingTree told us. May’s inflation report shows 8.6% inflation, the highest level in 40 years. To combat this inflation, the Federal Reserve increased its benchmark short-term interest rate. Since inflation remained higher than expected, the Fed raised rates by 50 basis points in May and by 75 basis points in June.

Following the inflation report, mortgage rates spiked ahead of the Fed’s announcement. “I think what we’re seeing is that lenders had already anticipated that the Fed was going to raise the Fed funds rate by 75 basis points and they began to preemptively push mortgage rates up,” Jacob Channel, senior economist at LendingTree, told us.

In addition to the COVID lockdown in China and Russia’s invasion of Ukrainian territory, financial markets are still reacting to other global factors. “​​We have a lot of factors like that that are putting upward pressure on mortgage rates,” Channel says. “The volatility has been through the roof,” Shashank Shekhar, founder and CEO of InstaMortgage, told us. “The market has been adjusting to a new news cycle practically every single day.”

What do Today’s Mortgage Rates Mean for Your Home Buying Plans?

Despite the dramatic increases, mortgage rates remain at relatively normal levels and are still considered historically favorable mortgage rates.

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Home prices are also on the rise, and as rates increase, that will also contribute to the rising cost of home ownership. Prices are up significantly from before the pandemic, with a combination of limited supply of homes, higher costs to build homes and massive demand from buyers leading to the surge.

It’s also important to remember that while mortgage rates are important, and the difference of a point or so can mean a lot of money over a 30-year mortgage, experts advise against trying to time the market to get the best mortgage rate. Focus on finding the right house, and do it when your personal lifestyle and financial situation indicate it’s the right time.

Be sure to get quotes from different lenders to ensure you’re getting the best deal, experts say. “The rate highly impacts your monthly affordability for as long as you will hold this home,” Skylar Olsen, principal economist at Tomo, a digital real estate and mortgage company, told us. “It is actually a critical piece of this decision, and that takes shopping around.”

Closing Costs & Loan Fees

Anytime you take out a home loan, you’ll want to be aware of the closing costs. Closing costs can be anywhere between 3-6% of the loan amount, and include fees such as loan origination charges, prepaid interest and property taxes. Choosing a higher interest rate in exchange for lender credit can reduce your upfront costs. There is a possibility that you will be selling your home or refinancing in five to eight years, so this strategy could save you money in the short-term.

Current Mortgage Refinance Rates

Refinancing became a bit more expensive today as 30-year fixed and 15-year fixed refinance mortgages saw their mean rates go up. Shorter term, 10-year fixed-rate refinance mortgages also inched up.

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The refinance averages for 30-year, 15-year, and 10-year loans are:

  • Today’s average 30-year fixed refinance rate is: 5.79%
  • 20-year fixed refinance rates are averaging 5.76%
  • 15-year refinance rate: 5.01%
  • 10-year refinance rate: 4.99%

Compare nationwide mortgage rates from various lenders .

30-Year Fixed Mortgage Rates

The median interest rate for a standard, 30-year, fixed mortgage is 5.84%, which is an increase of 11 basis points from last week.

15-Year Fixed-Rate Mortgage Rates

The median rate for a 15-year fixed mortgage is 5.00%, which is an increase of 11 basis points from the same time last week.

A 15-year, fixed-rate mortgage’s monthly payment is, undeniably, a much bigger monthly payment than what you’d get with a 30-year mortgage offering the same interest rate. However, 15-year loans have some considerable benefits: You’ll pay thousands less in interest and pay off your loan much earlier.

5/1 ARM Mortgage Rates

A 5/1 ARM has an average rate of 4.26%, which is a climb of 5 basis points from seven days ago.

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An ARM is ideal for borrowers who will sell or refinance before the rate changes. If that’s not the case, their interest rates could end up being markedly higher after a rate adjusts.

For the first five years, a 5/1 ARM will typically have a lower interest rate compared to a 30-year fixed mortgage. Keep in mind that your rate could climb higher and your payment might grow by hundreds of dollars a month.

How We Determine Mortgage Interest Rates

We use Bankrate’s daily rate data for our mortgage rate trends. These overnight rates are based on a specific personal profile, which only includes loans for primary residences where the borrower has a FICO score of 740+. Bankrate is part of the same parent company as NextAdvisor.

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

Rates as of July 21, 2022.

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Mortgage Rate Frequently Asked Questions (FAQ):

How Do I Qualify for the Lowest Mortgage Rate?

Shopping around for a mortgage is a great way to qualify for the lowest rate.

The mortgage rate you get depends on a number of factors lenders consider when assessing how likely you are to repay your mortgage. Your credit score factors into the decision. And even the value of the property compared to your loan balance is important. So putting more money into your down payment can reduce your mortgage interest rate.

But lenders will evaluate your situation differently. So you can give the same documentation to three different lenders, and find that none of the mortgage rates and fees you are offered are the same.

When Should I Lock in My Mortgage Rate?

It’s impossible to know what direction mortgage rates will go from day to day. That’s why a mortgage rate lock is such a useful tool because it protects you if rates go up. And with interest rates being relatively low right now, you should lock in your rate as soon as you can.

A rate lock will only last for a set amount of time, typically 30-60 days. If you hit a snag during closing and it looks like your rate lock will expire you should contact your lender. It may offer an extension of the lock, however, you might have to pay a fee for that privilege.

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Current Mortgage Refinance Rates, August 10, 2022 | Rates Move Higher

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Current Mortgage Refinance Rates, August 10, 2022 | Rates Move Higher

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Jason Stauffer

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Jason Stauffer is a personal finance reporter who previously covered the housing and mortgage market for NextAdvisor.…

August 10, 2022 | 6 Min Read

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We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

Today, a few closely followed mortgage refinance rates climbed.

Both the 15-year fixed and 30-year fixed saw their average rates increase. And average rates for 10-year fixed refinances also increased.

Refinance rates have spiked in the early part of this year and seem poised to continue their upward march. Short-term interest rates have already been raised twice by the Federal Reserve this year, and more are to come.

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A borrower should carefully review the numbers before taking out a new mortgage in the current interest rate environment. Simply put, the cost of refinancing is increasing because rates are higher. With that in mind, your refinance rate isn’t the only thing that matters. The fees you pay to close a home loan matter, and can add up to thousands of dollars.

Let’s take a look at the current refi rate trends.

The average mortgage refinance rates are as follows:

  • 30-year mortgage refinance rate: 5.53%
  • The average 15-year fixed refinance rates is 4.82%
  • 10-year mortgage refinance rate: 4.90%

You can discover the right refinance rate for you here.

Refinance Rate Forecast: What Is Driving Mortgage Rate Change?

June’s Consumer Price Index (CPI) reported annual inflation increased again in July to 9.1%. . It still puts it at the level of the 40-year highs we’ve experienced the past few months. And that’s bad news for refinance rates.

To fight high inflation the Federal Reserve has been raising short-term interest rates. Adding to the issue is Russia’s invasion of Ukraine and China’s COVID-19 lockdowns. Both of these geopolitical events threaten to compound existing supply chain issues and add to inflation. And we haven’t even started to feel these supply shocks, “it’s going to take months for those disruptions to seep fully into the supply chain,” Lindsey Piegza, chief economist at Stifel Financial told NextAdvisor.

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All of this means that we could be stuck with high inflation for longer than we’d like, which increases the likelihood that the Fed will need to be aggressive in raising rates.

Is Refinancing Now a Good Idea?

A rate and term refinance can save you money in the long run, but typically you’ll want the new rate to be at least 0.75% to 1% below your current rate. That said, the recent spike in refinance rates has drastically reduced the number of homeowners with interest rates that are well above today’s average rates.

In this hot housing market, the ability to turn the equity in your home into cash with a home equity line of credit (HELOC) has become increasingly popular. A HELOC can be a reasonable option for financing home repairs or improvements, just be sure to understand all of the fine print regardless fees, the interest rate and the repayment schedule..

Pro Tip: Refinance Closing Costs

As part of the refinancing process, you may have to pay upfront fees called closing costs. Fees can average 3% to 6% of your loan balance so it’s important to pay attention to them. A refinance may cut your monthly payment, just make sure that you plan on keeping the loan long enough for the ongoing savings to surpass the out-of-pocket costs.

30-Year Refinance Rates

Right now, the average 30-year fixed refinance has an interest rate of 5.53%, an increase of 8 basis points from what we saw last week.

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You can use our mortgage calculator to get an idea of what your monthly payments will be and to understand how paying more each month will impact your mortgage. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.

15-Year Refi Rates

Currently, the average rate for a 15-year fixed refinance loan is 4.82%, an increase of 12 basis points over the previous week.

Monthly payments on a 15-year refinance loan can be a considerable amount more than what you’d get with a 30-year mortgage. However, a shorter loan term can help you build up equity in your home much more quickly.

10-Year Refinance Rates

The average 10-year, fixed refinance rate is 4.90%, an increase of 23 basis points from what we saw last week.

Monthly payments with a 10-year refinance term would cost even more than what you’d pay on a 15-year loan. The upside is you’d end up paying even less interest over the life of the loan.

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How we determine refinance rates

The table below shows where refinance rates were headed in the last week.

These refi rates are provided by Bankrate. The information is based on homeowners that fit a certain profile, such as the home is an owner occupied single family residence. So you may qualify for different rates if your personal circumstances don’t align with the survey criteria.

Bankrate is owned by Red Ventures, Nextadvisor’s parent company.

Rates as of August 10, 2022.

Take a look at mortgage refinance rates for a number of different loans.

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Refinance Rate Frequently Asked Questions (FAQ):

Is It Still a Good Time to Refinance?

Refinance rates, though higher than the all-time record lows, are still lingering at uncommonly low levels. A lower rate can reduce your mortgage payment, so if you haven’t refinanced in the past few years, today’s low interest rates can make now a good time to do so.

However, your interest rate isn’t the only factor to consider when determining if now is the right time for you to refinance. The number of years you have left on your existing mortgage and your new repayment term will also influence your decision. A 30-year refinance loan may not make sense for you depending on how long you’ve had your current mortgage. However, you will pay more each month if you choose a shorter-term refinance, although depending on how much you can reduce your interest rate it may balance out.

Before you jump on an exceptionally low refinance rate, be sure that the overall deal makes sense for you.

How to Qualify for the Lowest Refinance Rate

Mortgage refinance rates are influenced by your personal finances. Having a healthier credit score and lower loan-to-value (LTV) ratios will usually receive a bigger markdown on the mortgage refinance rates they are offered.

But your personal financial situation isn’t the only consideration that affects your interest rate. The equity you have in the home also comes into play. Having at least 20% equity in your property is ideal.

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The type of mortgage loan has an affect on what your refinance rate will be. A loan with a shorter repayment term usually has lower interest rates than a loan with longer terms. The type of mortgage refinance you need makes a difference in the refinance interest rate. Cash-out mortgage refinance loans typically have higher mortgage refinance rates than other loans.

What Is the Average Cost of Refinancing?

When you refinance a mortgage the closing cost typically range from 3% to 6% of the loan amount. So for a $300,000 loan, you can expect to pay $9,000 to $18,000 in closing costs.

There are a number of factors that different lenders consider when assessing your situation. Compare your options and shop around. Everything from where the home is located to what loan type you’re refinancing into could impact your upfront costs.

Current Mortgage Rates by Loan Type

Mortgage Refinance Rates

  • 30 Year Fixed Refinance Rates
  • 15 Year Fixed Refinance Rates
  • VA Refinance Rates
  • Jumbo Refinance Rates

Home Loan Purchase Rates

  • 30 Year Fixed Mortgage Rates
  • 20 Year Fixed Mortgage Rates
  • 15 Year Fixed Mortgage Rates
  • 10 Year Fixed Mortgage Rates

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Current Refinance Rates, July 25, 2022 | Rates Tick Lower

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Current Refinance Rates, July 25, 2022 | Rates Tick Lower

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Jason Stauffer

Jason Stauffer

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Jason Stauffer is a personal finance reporter who previously covered the housing and mortgage market for NextAdvisor.…

July 25, 2022 | 7 Min Read

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We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

Today, several benchmark refinance rates went down.

Both the 15-year fixed and 30-year fixed saw their mean rates drop. The average rate on 10-year fixed refinance mortgages also trailed off.

Refinance rates have spiked in the early part of this year and seem poised to continue their upward march. We’ve already seen multiple increases in short-term interest rates and the Fed has plans for more to come.

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Given the current rate environment, it is prudent for borrowers to look hard at the numbers before taking out a new home loan. Simply put, the cost of refinancing is increasing because rates are higher. That said, interest rates aren’t the only thing to concentrate on. The interest you’re paying over time is one thing, but the upfront closing costs can be 3% to 6% of the loan amount. That’s potentially thousands of dollars in fees.

Here’s where refinance rates are today .

The average mortgage refinance rates are as follows:

  • 30-year mortgage refinance rate: 5.59%
  • Today, the average 15-year fixed refinance rate is 4.85%
  • 10-year mortgage refinance rate: 4.74%

Take a look at local refinance rates.

Where Are Refinance Trending?

The annual inflation rate came in it at 8.3% in April, according to the data from the Bureau of Labor Statistics. It still puts it at the level of the 40-year highs we’ve experienced the past few months. And that’s not good for refinance rates.

In response to high inflation that has lasted longer than initially anticipated, the Federal Reserve has begun increasing interest rates. There are also geopolitical events that are poised to add to our inflation woes. China’s COVID lockdowns and the war in Ukraine could both exacerbate existing supply shortages. These issues haven’t even hit the U.S. yet, “it’s going to take months for those disruptions to seep fully into the supply chain,” Lindsey Piegza, chief economist at Stifel Financial told NextAdvisor.

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Because of all of this, we could be stuck with high inflation for much longer than we want, which makes it more likely that the Fed will have to raise interest rates aggressively.

Does Refinancing Still Make Sense?

Generally speaking, homeowners could save thousands with a rate and term refinance if their new rate is 0.75% to 1% below their current rate. That said, the recent spike in refinance rates has drastically reduced the number of homeowners with interest rates that are well above today’s average rates.

In this hot housing market, the ability to turn the equity in your home into cash with a home equity line of credit (HELOC) has become increasingly popular. In some situations, a HELOC can make sense, especially when consolidating debt or remodeling your home.

History of the 30-Year Fixed Mortgage Rate

Current mortgage interest rates are still within a normal historical range, even if they’re breaking through the psychological barrier of 5%. If your current rate is higher than today’s rates, then a refinance could be a good option.

The historical rate trends shown in this chart reference data complied by Freddie Mac. NextAdvisor typically uses rate information collected by Bankrate. Although these mortgage rate surveys differ, they tend to show the same trends.

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Pro Tip: Refinance Closing Costs

When you take out a new home loan, you’ll pay upfront fees totaling 3% to 6% of the loan amount. If you refinance, this is a significant expense you should take into account. Your monthly savings may not have exceeded the upfront fees if you refinance too often or sell your home soon after refinancing.

30-Year Refinance Rates

Right now, the average 30-year fixed refinance has an interest rate of 5.59%, a decrease of 10 basis points over the previous week.

You can use our mortgage calculator to price out your monthly mortgage payments and to understand what the effects of making extra payments would be. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.

15-Year Refinance Rates

Right now, average 15-year fixed refinance rates are 4.85%, a decrease of 8 basis points from what we saw last week.

Monthly payments on a 15-year refinance loan are tougher to fit into a monthly budget than a 30-year mortgage payment would be. However, a shorter loan term can save you thousands of dollars interest over the life of the loan.

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10-Year Fixed Refinance Rates

The average 10-year, fixed refinance rate is 4.74%, a decrease of 7 basis points from a week ago.

Monthly payments with a 10-year refinance term would cost a significant amount more per month than you would with a 15-year term, but you’ll pay less interest in the long term.

How our refi rates are calculated

Our refinance rate trends are based Bankrate’s daily rate data, which is owned by the same parent company as NextAdvisor. These daily refinance interest rate averages are based on a consumer profile that meets these qualifications:

  • At least 20%+ equity
  • Primary residence
  • Credit score of 740+
  • Existing single-family detached home (not new construction)

The information supplied to Bankrate from lenders across the nation is provided in the table below:

Rates as of July 25, 2022.

Take a look at mortgage refinance rates for a number of different loans.

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Refinance Rate Frequently Asked Questions (FAQ):

Should I Refinance Right Now?

Refinancing isn’t solely dependent on the numbers, like the refinance rate, your situation is also a big factor. You’ll want to ask yourself if refinancing will help you accomplish your goals

One rule of thumb is that refinancing makes sense if you can reduce your interest rate by 1% or more. But sometimes the purpose of a refinance isn’t to reduce your mortgage rate. Recently, more homeowners have taken advantage of increasing home values with a HELOC. The money you receive from a HELOC can be used for anything, but HELOCs usually have higher interest rates than other mortgage loans. So it’s important to have a plan before you decided to take on more debt.

Overall, now is still an excellent time to refinance as long as it make sense for your situation.

How to Ensure You Get the Best Refinance Rate

Refinance rates are influenced by your personal finances. Having a healthier credit score and lower loan-to-value (LTV) ratios will usually get a bigger markdown on the mortgage refinance rates they are offered.

But your personal financial situation isn’t the only thing that will impact the refinance interest rate you qualify for. Your home’s equity also factors into the decision. Having at least 20% equity in your property is ideal.

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Even the mortgage itself has an affect on what your interest rate will be. A shorter-term refinance loan usually has lower rates than mortgage refinance loans with longer repayment terms, all else equal. Your refinance rate is also impacted by the type of refinance you plan on taking out. A cash-out refinance loan typically has a higher refinance rate than other types of home loan refinancing.

What Is the Average Cost of Refinancing?

There are a number of factors that influence the cost of refinancing, including:

  • Where the property is located
  • Type of refinance loan
  • What lender you choose
  • Loan amount
  • FICO score
  • The property’s equity

In general, refinance closing costs are 3% to 6% of the loan balance. The type of the loan you are refinancing into can impact its cost in a few different ways. Certain government-backed refinance loans, like the FHA Streamline or VA Interest Rate Reduction Refinance Loan (IRRRL) may not require an appraisal, but could come with hefty upfront fees to cover the mortgage insurance. On the other hand, if you have enough equity, you could refinance into a conventional loan to possibly get rid of the mortgage insurance requirement.

Mortgage Interest Rates by Loan Type

Mortgage Refi Rates

  • 30 Year Fixed Refinance Rates
  • 15 Year Fixed Refinance Rates
  • VA Refinance Rates
  • Jumbo Refinance Rates

Home Loan Rates

  • 30 Year Fixed Mortgage Rates
  • 20 Year Fixed Mortgage Rates
  • 15 Year Fixed Mortgage Rates
  • 10 Year Fixed Mortgage Rates

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Today’s Mortgage Rates, July 22, 2022 | Rates Trending Higher

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Today’s Mortgage Rates, July 22, 2022 | Rates Trending Higher

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Jason Stauffer

Jason Stauffer

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Jason Stauffer is a personal finance reporter who previously covered the housing and mortgage market for NextAdvisor.…

July 22, 2022 | 7 Min Read

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We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

In 2022, mortgage rates rose nearly to levels not seen since before the pandemic, after nearly two years of record-low rates.
The refinance or purchase of your home doesn’t have to be put on hold. Although rates are higher than they were in 2021, 30-year fixed rates are still close to rates from a few years ago.

The fact is, a homebuyer’s decision involves a lot more than just an interest rate. It’s a lifestyle decision. In spite of the impact of the interest rate market on mortgages, it is not wise to base your decision solely on a few basis points. What’s most important to consider is to set a realistic homebuying budget and stick to it.

Let’s look at current mortgage rates, previous rates, and what all this means for borrowers.

Looking at today’s mortgage rates a number of preeminent rates boasted increases. The averages for both 30-year fixed and 15-year fixed mortgages both crept higher. The most common type of variable-rate mortgage is the 5/1 adjustable-rate mortgage (ARM) remained steady.

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Mortgage rates currently are:

  • 30-year fixed mortgage rates are averaging 5.80%
  • 20-year mortgage rate: 5.74%
  • 15-year mortgage rate: 4.98%
  • Today’s 10-year fixed mortgage rate is 4.92%
  • 5/1 ARM rate: 4.21%

Mortgage Rate Trends: Why Are Mortgage Rates Changing So Fast?

Mortgage rates have increased because of a variety of economic factors so far this year. Persistently high inflation is a big one, Jacob Channel, senior economic analyst at LendingTree told us. May’s inflation report shows 8.6% inflation, the highest level in 40 years. To combat this inflation, the Federal Reserve increased its benchmark short-term interest rate. Since inflation remained higher than expected, the Fed raised rates by 50 basis points in May and by 75 basis points in June.

Following the inflation report, mortgage rates spiked ahead of the Fed’s announcement. “I think what we’re seeing is that lenders had already anticipated that the Fed was going to raise the Fed funds rate by 75 basis points and they began to preemptively push mortgage rates up,” Jacob Channel, senior economist at LendingTree, told us.

In addition to the COVID lockdown in China and Russia’s invasion of Ukrainian territory, financial markets are still reacting to other global factors. “​​We have a lot of factors like that that are putting upward pressure on mortgage rates,” Channel says. “The volatility has been through the roof,” Shashank Shekhar, founder and CEO of InstaMortgage, told us. “The market has been adjusting to a new news cycle practically every single day.”

Current Mortgage Rates: Are They Good For Buying a Home Right Now?

Despite the dramatic increases, mortgage rates remain at relatively normal levels and are still considered historically favorable mortgage rates.

Home prices are also on the rise, and as rates increase, that will also contribute to the rising cost of home ownership. Prices are up significantly from before the pandemic, with a combination of limited supply of homes, higher costs to build homes and massive demand from buyers leading to the surge.

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It’s also important to remember that while mortgage rates are important, and the difference of a point or so can mean a lot of money over a 30-year mortgage, experts advise against trying to time the market to get the best mortgage rate. Focus on finding the right house, and do it when your personal lifestyle and financial situation indicate it’s the right time.

Be sure to get quotes from different lenders to ensure you’re getting the best deal, experts say. “The rate highly impacts your monthly affordability for as long as you will hold this home,” Skylar Olsen, principal economist at Tomo, a digital real estate and mortgage company, told us. “It is actually a critical piece of this decision, and that takes shopping around.”

Pay Attention to Loan Fees

Anytime you take out a home loan, be sure to pay close attention to the closing costs. These fees include loan origination fees, prepaid interest, and property taxes, and can range from 3 to 6% of the loan amount.. Accepting a higher interest rate, in exchange for lender credits can assist you in reducing your out-of-pocket costs. The strategy can save you money in the short-term, so it’s worth considering if you plan to sell or refinance your home within five to eight years.

Looking at Today’s Mortgage Refinance Rates

There’s good news if you’ve been considering a refinance because the mean rates for 15-year fixed and 30-year fixed refinance loans declined. If you’ve been considering a 10-year refinance loan, just know average rates also went down.

The average refinance rates are as follows:

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  • 30-year fixed refinance rates are averaging: 5.69%
  • 20-year fixed refinance rate: 5.69%
  • 15-year fixed refinance rates are averaging 4.97%
  • 10-year refinance rate: 4.90%

Compare countrywide home loan rates from various lenders .

30-Year Fixed Mortgage Interest Rates

The average 30-year fixed mortgage interest rate is 5.80%, which is a growth of 1 basis point from seven days ago.

15-Year Fixed Mortgage Interest Rates

The median rate for a 15-year fixed mortgage is 4.98%, which is an increase of 1 basis point from seven days ago.

A 15-year, fixed-rate mortgage’s monthly payment will be much bigger. So finding room in your budget for a 30-year loan’s monthly payment would be more simple. However, 15-year loans have some considerable benefits: You’ll pay thousands less in interest and pay off your loan much earlier.

5/1 ARM Mortgage Rates

A 5/1 ARM has an average rate of 4.21%, the same rate from the same time last week.

An ARM is ideal for households who will sell or refinance before the rate changes. If that’s not the case, their interest rates could end up being significantly higher after a rate adjusts.

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For the first five years, a 5/1 ARM will typically have a lower interest rate compared to a 30-year fixed mortgage. Keep in mind that your payment could end up being hundreds of dollars higher after a rate adjustment, depending on the terms of your loan.

How Our Mortgage Interest Rates Are Calculated

NextAdvisor’s mortgage interest rate averages are pulled from Bankrate’s daily rate data.. These overnight rates are based on a specific borrower profile, which only includes loans for primary residences where the borrower has a FICO score of 740+. Bankrate is part of the same parent company as NextAdvisor.

The table below compares today’s average rates to what they were a week ago, and is based on information provided to Bankrate by lenders nationwide:

Rates as of July 22, 2022.

Pro Tip

Use NextAdvisor’s mortgage calculator to see how your monthly payment changes based on things like your mortgage rate, homeowners insurance, and property taxes.

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Mortgage Rate Frequently Asked Questions (FAQ):

How Do I Get the Lowest Mortgage Rate?

Shopping around for a mortgage is one of the best ways to get the lowest interest rate.

The mortgage rate you’ll qualify for depends on a number of factors lenders consider when assessing how likely you are to repay your home loan. Your credit score is a big part of this decision. And even the property’s value compared to your mortgage balance is important. So putting more money into your down payment can reduce your interest rate.

But banks will look at your situation differently. So you can give the same documentation to three different lenders, and receive mortgage offers with vastly different rates and fees.

Is It a Good Idea to Lock in My Mortgage Rate Right Now?

It’s impossible to know what direction mortgage rates will go from day to day. That’s why a mortgage rate lock is such a useful tool because it protects you if rates go up. And with interest rates being relatively low right now, you should lock in your rate as soon as you can.

A rate lock will only last for a set amount of time, typically 30-60 days. If you hit a snag during closing and it looks like your rate lock will expire you should contact your lender. It may be able to extend the rate lock, however, you might have to pay a fee for that privilege.

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