Today’s mortgage, refinance rates: October 10, 2022

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Mortgage rates have been rising in recent days as investors watch for hints of what the Federal Reserve’s next move will be at its November meeting.

The Fed has said it will continue to raise the federal funds rate until inflation falls to a more acceptable level, and that slowing the hot labor market is part of that.

The September jobs report showed that the labor market is still relatively strong, which the Fed may see as reason to opt for another very large hike at its November meeting. But many worry that more rate hikes could push the US into recession.

If a recession occurs, mortgage rates could begin to decline. However, right now, the combination of high inflation, a strong labor market and Fed rate hikes means that mortgage rates may continue to rise through the rest of 2022.

Mortgage rates today

Type of mortgage Average price today
This information is provided by Zillow. See more mortgage rates on Zillow

Mortgage refinance rates today

Type of mortgage Average price today
This information is provided by Zillow. See more mortgage rates on Zillow

Mortgage calculator

Use our free mortgage calculator to see how today’s mortgage rates will affect your monthly payments. By linking different interest rates and terms, you’ll also understand how much you’ll pay over the life of your mortgage.

Mortgage calculator

$1,161
Your estimated monthly payment

  • By paying a 25% a bigger down payment would save you $8,916.08 on interest
  • Interest rate reduction by 1% he would save you $51,562.03
  • Paying extra $500 each month would reduce the duration of the loan by 146 months

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

30 year fixed mortgage rates

The current average 30-year fixed mortgage rate is 6.66%, according to Freddie Mac. This is a slight decrease compared to the previous week.

The 30-year fixed rate mortgage is the most common type of mortgage. With this type of mortgage, you’ll pay back what you borrowed over 30 years, and the interest rate won’t change for the life of the loan.

The long 30-year term allows you to spread your payments over a long period of time, which means you can keep your monthly payments lower and more manageable. The trade-off is that you’ll get a higher interest rate than you would with shorter terms or adjustable rates.

15 year fixed mortgage rates

The average 15-year fixed mortgage rate is 5.9 percent, down slightly from last week, according to data from Freddie Mac.

If you want the predictability that comes with a fixed rate, but want to spend less in 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 30-year fixed rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you will have a higher monthly payment than you would with a longer term.

5/1 adjustable mortgage rates

The average 5/1 adjustable mortgage rate is 5.36%, up slightly from last week.

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

If you’re considering an ARM, make sure you understand how much the interest rate could increase each time it adjusts and how much it could ultimately increase over the life of the loan.

Are mortgage rates going up?

Mortgage rates began to rise from historic lows in the second half of 2021 and have risen significantly so far in 2022.

Over the past 12 months, the Consumer Price Index has increased by 8.3%. The Federal Reserve is working to get inflation under control and is expected to raise the target federal funds rate two more times this year, following hikes at its previous five meetings.

Although not directly linked to the federal funds rate, mortgage rates sometimes rise as a result of the Fed’s rate hikes and investors’ expectations of how those hikes will affect the economy.

Inflation remains elevated but has begun to slow, which is a good sign for mortgage rates and the broader economy.

How can I find personalized mortgage rates?

Some mortgage lenders allow you to adjust your mortgage rate on their websites by entering your down payment amount, zip code and credit score. The resulting interest rate isn’t fixed, but it can give you an idea of ​​what you’ll pay.

If you’re ready to start shopping for homes, you can apply for pre-approval with a lender. The lender does a hard credit check and looks at the details of your finances to lock in a mortgage rate.

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