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Mortgage Interest Rates on June 21, 2022: Rates Keep Scaling Up

Rising inflation means you can expect rising mortgage rates. Here's what that means for homebuyers.

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The average interest rates for both 15-year fixed and 30-year fixed mortgages both scaled up today. And the average rates for 5/1 adjustable-rate mortgages also climbed.

Mortgage rates have been consistently going up since the start of this year, and are expected to keep climbing throughout 2022. In general, interest rates are dynamic -- they rise and fall on a daily basis depending on economic factors, including inflation and the federal funds rate, which the Federal Reserve has already increased three times this year. Because the Fed plans to keep hiking interest rates in order to contain inflation, prospective homebuyers will likely be able to lock in a lower rate now rather than later this year. Interviewing multiple lenders to compare rates and fees will help you find the best option for your financial situation.

Keep in mind that home prices are affected not only by interest rates but a variety of factors. While we can't predict in the long term how the Fed's policies will impact the housing market, higher rates means steeper monthly mortgage payments for anyone looking to buy a home right now. 

30-year fixed-rate mortgages

The average 30-year fixed mortgage interest rate is 6.01%, which is a growth of 14 basis points from one week ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most common loan term. A 30-year fixed mortgage will usually have a greater interest rate than a 15-year fixed rate mortgage -- but also a lower monthly payment. You won't be able to pay off your house as quickly and you'll pay more interest over time, but a 30-year fixed mortgage is a good option if you're looking to minimize your monthly payment.

15-year fixed-rate mortgages

The average rate for a 15-year, fixed mortgage is 5.27%, which is an increase of 26 basis points from the same time last week. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and interest rate will have a bigger monthly payment. But a 15-year loan will usually be the better deal, if you can afford the monthly payments. These include typically being able to get a lower interest rate, paying off your mortgage sooner, and paying less total interest in the long run.

5/1 adjustable-rate mortgages

A 5/1 ARM has an average rate of 4.18%, an addition of 23 basis points from the same time last week. With an ARM mortgage, you'll usually get a lower interest rate than a 30-year fixed mortgage for the first five years. However, since the rate shifts with the market rate, you could end up paying more after that time, as described in the terms of your loan. Because of this, an ARM may be a good option if you plan to sell or refinance your house before the rate changes. Otherwise, changes in the market means your interest rate might be significantly higher once the rate adjusts.

Mortgage rate trends

While 2022 kicked off with low mortgage rates, rates have been increasing over recent months, shattering the historic lows from the start of the pandemic. Rates are rising in response to record-high inflation and recent action by the Federal Reserve, which raised interest rates 0.75 percentage points this month -- the highest rate increase since 1994. As a general rule, when inflation is low, mortgage rates tend to be lower -- when inflation is high, rates tend to be higher. 

Though the Fed does not directly set mortgage rates, the central bank's policy moves do influence how much you'll end up paying for your home loan.The Fed has signaled it will continue to raise rates over the course of this year, so if you're looking to buy a house in 2022, expect mortgage rates to keep trending up.

We use rates collected by Bankrate, which is owned by the same parent company as CNET, to track changes in these daily rates. This table summarizes the average rates offered by lenders across the country:

Average mortgage interest rates

ProductRateLast weekChange
30-year fixed6.01%5.87%+0.14
15-year fixed5.27%5.01%+0.26
30-year jumbo mortgage rate5.94%5.88%+0.06
30-year mortgage refinance rate 5.97%5.89%+0.08

Rates as of June 21, 2022.

How to find the best mortgage rates

You can get a personalized mortgage rate by reaching out to your local mortgage broker or using an online calculator. Make sure to take into account your current financial situation and your goals when trying to find a mortgage. Specific mortgage rates will vary based on factors including credit score, down payment, debt-to-income ratio and loan-to-value ratio. Having a good credit score, a larger down payment, a low DTI, a low LTV, or any combination of those factors can help you get a lower interest rate. The interest rate isn't the only factor that affects the cost of your home — be sure to also consider additional factors such as fees, closing costs, taxes and discount points. Make sure you talk to multiple lenders -- such as local and national banks, credit unions and online lenders -- and comparison shop to find the best mortgage loan for you.

What's the best loan term?

One important factor to consider when choosing a mortgage is the loan term, or payment schedule. The loan terms most commonly offered are 15 years and 30 years, although you can also find 10-, 20- and 40-year mortgages. Mortgages are further divided into fixed-rate and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are fixed for the duration of the loan. Unlike a fixed-rate mortgage, the interest rates for an adjustable-rate mortgage are only stable for a certain amount of time (typically five, seven or 10 years). After that, the rate fluctuates annually based on the market interest rate.

When choosing between a fixed-rate and adjustable-rate mortgage, you should think about how long you plan to stay in your house. Fixed-rate mortgages might be a better fit for people who plan on staying in a home for quite some time. Fixed-rate mortgages offer more stability over time in comparison to adjustable-rate mortgages, but adjustable-rate mortgages may offer lower interest rates upfront. If you aren't planning to keep your new house for more than three to 10 years, however, an adjustable-rate mortgage could give you a better deal. There is no best loan term as a rule of thumb; it all depends on your goals and your current financial situation. It's important to do your research and understand what's most important to you when choosing a mortgage.