Today’s Mortgage & Refinance Rates: June 14, 2022 | Rates moderate ahead of expected Fed hike


Mortgage rates rose late last week after CPI data released in May showed inflation had picked up over the past month after falling in April. Rates are down slightly this week, although 30-year mortgage rates are still above 5%.

The Federal Reserve meets today and is expected to announce a 0.5% hike in the federal funds rate tomorrow. But last week’s CPI report has some worried that the central bank may become more aggressive in its fight against inflation and instead hike it to 0.75%, which could push mortgage rates even higher.

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Use our free mortgage calculator to see how today’s interest rates will affect your monthly payments.

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$1,161 your estimated monthly payment

  • Paying 25% more down payment saves $8,916.08 in interest costs
  • If you lower the interest rate by 1%, you save $51,562.03
  • Paying an additional $500 each month shortens the loan term by 146 months

If you click More Details, you can also see how much you will pay throughout the life of your mortgage, including the amount of principal versus interest.

30 year fixed mortgage rates

According to Freddie Mac, the current average 30-year mortgage rate is 5.23%. After several weeks of decline, this is the first week the rate has risen since mid-May.

The 30-year fixed-rate mortgage is the most common form of home loan. With this type of mortgage, you pay off the amount borrowed over 30 years, and your interest rate does not change over the life of the loan.

The longer 30-year period allows you to spread your payments out over a longer period of time, meaning you can keep your monthly payments lower and more manageable. The trade-off is that you have a higher rate than with shorter terms or adjustable rates.

15 year fixed mortgage rates

According to data from Freddie Mac, the average 15-year mortgage rate is 4.38%, up slightly from last week.

If you want the predictability of a fixed rate but want to spend less interest over the life of your loan, a 15-year fixed-rate mortgage may be right for you. Because these terms are shorter and have lower interest rates than a 30-year fixed-rate mortgage, you could potentially save thousands of dollars in interest. However, you will receive a higher monthly payment over a longer period of time.

5/1 Adjustable Mortgage Rates

The average 5/1 mortgage rate is 4.12%, higher than last week.

Adjustable rate mortgages can be very attractive to borrowers when interest rates are high, as interest rates on these mortgages are typically lower than interest rates on fixed-rate mortgages. A 5/1 ARM is a 30-year mortgage. You receive a fixed price for the first five years. After that, your tariff will be adjusted once a year. If the rates are higher when you adjust your rate, you’ll get a higher monthly payment than what you started with.

If you’re considering an ARM, make sure you understand how much your interest rate can increase with each adjustment, and how much it can eventually increase over the life of the loan.

Will mortgage rates rise in 2022?

To help the US economy during the COVID-19 pandemic, the Federal Reserve aggressively bought assets, including mortgage-backed securities. This helped keep mortgage rates at historic lows.

However, the Fed is now planning to trim its assets and expects the federal funds rate to quintuple in 2022 after hikes in March and May.

Average mortgage rates have risen recently, and Fed announcements suggest mortgage rates could rise further in 2022. You might want to lock in an interest rate now rather than risk a higher rate later, but don’t rush to buy a home if you’re not ready.

What is a Fixed Rate Mortgage vs. an Adjustable Rate Mortgage?

Historically, variable mortgage rates have been lower than 30-year fixed rates. As mortgage rates rise, ARMs can start to look like the better deal — but that depends on your situation.

A fixed-rate mortgage secures your interest rate for the entire term of your loan. An adjustable rate mortgage locks into your interest rate for the first few years, then your interest rate goes up or down from time to time.

Because variable interest rates start out low, they’re viable options if you’re planning to sell your home before interest rates change. For example, if you get a 7/1 ARM and want to move before the end of the seven-year fixed rate period, you don’t risk paying the higher rate later.

But if you’re looking to buy a forever home, a fixed rate may still be better since you don’t have a chance of seeing your interest rate go up in a few years.

Molly Grace

mortgage reporter

Laura Grace Tarpley, CEPF

Personal finance review editor



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