Mortgage and Refinancing Rates Today: September 22, 2022

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As expected, the Federal Reserve decided to raise the federal funds rate by 75 basis points at its meeting yesterday. This is the third time in a row that the central bank has raised the benchmark interest rate this far, and more increases are likely to come at the November and December meetings.

Borrowers should expect mortgage rates to remain high as the Federal Reserve continues to tighten monetary policy.

Mortgage rates are not directly affected by the federal funds rate, but they are influenced by investor expectations. For now, most investors expect the Fed to continue aggressively raising interest rates until inflation shows persistent signs of slowing.

So far, rates have remained relatively stubborn, so the cost of borrowing – including mortgages – is likely to remain high for the foreseeable future. But rates may start to fall later next year.

Today’s Mortgage Rates

Mortgage type Today’s average price
This information was provided by Zillow. see more
Mortgage rates on Zillow

Today’s Mortgage Refinance Rates

Mortgage type Today’s average price
This information was provided by Zillow. see more
Mortgage rates on Zillow

Mortgage Calculator

use Free Mortgage Calculator Let’s see how today’s mortgage rates will affect your monthly payments. By connecting different rates and lengths, you will also understand how much you will pay over the entire term of the mortgage.

Mortgage Calculator

$1161
Estimated monthly payment

  • pay 25% It will give you a higher down payment USD 8,916.08 on interest charges
  • Reduce the interest rate by 1% will save you $51,562.03
  • Pay extra 500 dollars Each month would reduce the term of the loan by 146 months

Click “More Details” for tips on how to save money on your mortgage in the long run.

Fixed mortgage rates for 30 years

average current 30 year fixed rate mortgage It is 6.02% according to Freddy Mac. This is the highest rate since 2008, and has increased for the fourth consecutive week.

A 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you will pay back what you borrowed over 30 years, and your interest rate will not change for the life of the loan.

The extended 30-year term allows you to spread out your payments over an extended period of time, which means you can keep your monthly payments lower and more manageable. The trade-off is that you will have a higher rate than you would with shorter periods or adjustable rates.

Fixed mortgage rates for 15 years

average Fixed rate mortgage for 15 years It is 5.21%, up from the previous week, according to Freddie Mac data. The last time that rate exceeded 5% was in 2009.

If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, then a 15-year fixed rate mortgage might be right for you. Since these terms are shorter and have lower rates than 30-year fixed rate mortgages, you can potentially save tens of thousands of dollars in interest. However, you will get a higher monthly payment than you get in the long run.

5/1 adjustable mortgage rates

The average 5/1 adjustable mortgage rate is 4.93%, up from the previous week.

adjustable rate mortgages It can look very attractive to borrowers when rates are high, because the rates on these mortgages are usually lower than fixed mortgage rates. a 1/5 arm It is a 30-year mortgage. For the first five years, you will have a fixed price. After that, your rate will be adjusted once a year. If the rates are higher when you adjust your rates, you will get a higher monthly payment than you started with.

If you’re considering ARM, make sure you understand how much your rate will rise each time it adjusts and how much will eventually increase over the life of the loan.

Are Mortgage Rates Rising?

Mortgage rates started to rise from historical lows in the second half of 2021 and have increased significantly so far in 2022. More recently, rates have been relatively volatile.

In the last 12 months, The consumer price index rose 8.3%.. The Federal Reserve is working to control inflation, and plans to increase the federal funds target rate two more times this year, after increases in its previous five meetings.

Although not directly related to the federal funds rate, mortgage rates are sometimes raised as a result of higher Fed rates and investor expectations about how those hikes will affect the economy.

Inflation is still high, but it’s starting to slow, which is a good indicator of mortgage rates and the broader economy.

How do I find personal mortgage rates?

some Mortgage Lenders They let you customize your mortgage rate on their websites by entering the amount of your down payment, zip code, and credit score. The resulting rate is not fixed, but it can give you an idea of ​​what you will be paying.

If you’re ready to start shopping for homes, you can Apply for pre-approval with the lender. The lender pulls tight credit and looks into the details of your money to secure the mortgage rate.

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