Here are today’s mortgage rates, July 13, 2022 | Price increase

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Almost two years have passed with record mortgage rates. Now 2022 has started with rates up from pre-pandemic levels.

Don’t cancel your home buying plans just yet. Even though the rates are higher than they were in 2021, they are still considered “normal” from a historical perspective. Only a few years ago, 30-year fixed rates were in the top 5%.

Either way, home buying decisions take a lot more into consideration besides the interest rate. Buying a house is making a lifestyle choice. What happens in the interest rate market can influence a decision, it is wise not to base it on just a few basis points of a mortgage rate. Setting and sticking to a realistic home buying budget is far more important than the 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.

When it comes to mortgage rates today, a few important rates have seen growth. The averages for 30-year and 15-year fixed mortgages both increased. The most common type of adjustable rate mortgage is the 5/1 Adjustable Rate Mortgage (ARM) which has gone down.

Check out today’s rates:

Mortgage Rate Forecast: What’s Driving Mortgage Rate Changes?

Various economic factors have caused mortgage rates to rise this year. Persistently high inflation is a big reason, Jacob Channel, senior economic analyst at LendingTree, told us. According to the Bureau of Labor and Statistics’ May inflation report, inflation recently hit 8.6%, its highest level in 40 years. The Federal Reserve raised its short-term policy rate by 50 basis points in May and 75 basis points in June as inflation remained higher than expected.

A spike in mortgage rates preceded the Fed’s announcement after the release of the inflation report. “I think what we’re seeing is that lenders had already forecasted the Fed was going to raise the fed funds rate by 75 basis points and they started pushing mortgage rates up preemptively,” we said. says Jacob Channel, senior economist at LendingTree. .

“​We have a lot of factors like that putting upward pressure on mortgage rates,” Channel says. Financial markets are still reacting to China’s COVID lockdown and Russia’s invasion of Ukrainian territory. “Volatility has gone through the roof,” Shashank Shekhar, Founder and CEO of InstaMortgage, told us. “The market has adapted to a new round of news virtually every day.”

Are current mortgage rates good for buying a home right now?

Even with the recent dramatic increases, mortgage rates remain at normal levels and are still considered historically favorable.

But the overall cost of home ownership is now rising with rising rates. With a combination of limited supply of homes, prices have risen significantly from pre-pandemic levels. Massive buyer demand and rising home construction costs are also contributing to the surge.

A point or two difference can mean a lot of money on a 30-year mortgage. But experts advise against trying to time the market to get the best mortgage rate. It’s more important to focus on finding the right home, and doing it when your personal lifestyle and financial situation indicate it’s the right time.

Mortgage lender rates can vary widely. In order to get the best deal, shop around between a few different mortgage lenders. Be sure to get quotes from different lenders to ensure you get the best deal, experts say. “The rate has a big impact on your monthly affordability as long as you keep that house,” Skylar Olsen, senior economist at Tomo, a digital real estate and mortgage company, told us. “It’s actually a critical part of that decision, and it requires shopping around.”

What to know about loan fees

If you’re taking out a home loan, your decision should factor in loan closing costs. Closing costs can be anywhere from 3-6% of the loan amount and include fees such as loan origination fees, prepaid interest and property taxes. One way to reduce your outgoings is to accept a higher interest rate in exchange for credit from lenders. This strategy can save you money in the short term, so it’s worth considering if there’s a chance you’ll sell the home or refinance in five to eight years.

Looking at today’s mortgage refinance rates

Refinancing has become a little more expensive today as 30-year and 15-year fixed refinance mortgages have seen their average rates increase. Shorter-term 10-year fixed rate refinance mortgages also saw an increase.

The average refinancing rates are as follows:

Check out the mortgage rates that meet your specific needs.

30-year mortgage rates

The average 30-year fixed mortgage interest rate is 5.69%, up 12 basis points from the previous week.

15-year fixed mortgage interest rate

The median rate for a 15-year fixed mortgage is 4.90%, up 6 basis points from a week ago.

The monthly payment on a 15-year fixed rate mortgage is, undeniably, a much higher monthly payment than what you would get on a 30-year mortgage offering the same interest rate. However, 15-year loans have significant benefits: you’ll pay thousands less in interest and pay off your loan much faster.

5/1 ARM Mortgage Rates

A 5/1 ARM has an average rate of 4.22%, down 4 basis points from a week ago.

An ARM is ideal for individuals who will refinance or sell before the rate changes. If not, their interest rates could end up being significantly higher after a rate adjustment.

For the first five years, a 5/1 ARM will typically have a lower interest rate than a 30-year fixed mortgage. Keep in mind that depending on your loan rate adjustment, your payment may increase significantly.

How We Determine Mortgage Interest Rates

To get an idea of ​​how mortgage rates are changing, we rely on information collected by Bankrate, which is owned by the same parent company as NextAdvisor. The Daily Rate survey focuses on home loans where the borrower has a 740+ credit score, an LTV of 80% or less, and lives in the home.

Mortgage interest rate data listed below based on the Bankrate Mortgage Rate Survey:

Updated July 13, 2022.

Pro tip

Plug and play your desired mortgage interest rate and the rest of your loan details into our mortgage calculator to see what your monthly payment might look like.

Frequently Asked Questions (FAQ) About Mortgage Rates:

How to get the best mortgage rate?

Shopping around for a home loan is one of the best ways to qualify for the lowest interest rate.

Your mortgage rate depends on a number of factors that lenders consider when assessing the risk of giving you a mortgage. Your credit score is a big part of that decision. And your loan-to-value (LTV) ratio matters, so having a bigger down payment is better for your interest rate.

But lenders will assess your situation differently. So you can give the same documentation to three different mortgage providers and get offers with three different mortgage rates and fees that vary equally.

Should I lock in my mortgage rate now?

It is impossible to know which direction mortgage rates will go from one day to the next. That’s why a mortgage rate lock is such a useful tool, because it protects you if rates go up. And since interest rates are relatively low right now, you should lock in your rate as soon as possible.

When you lock in your rate, ask your lender how long the lock will last. A rate lock can be valid for 30 to 60 days, which usually gives you plenty of time to close before the lock expires. If you want to extend the rate lock, find out about fees, as many lenders charge a fee to extend a rate lock.