Today’s Mortgage, Refinancing Rates: May 29, 2022

Mortgage rates fell last week, with the 30-year fixed rate briefly diving below 4.8% on Thursday. After months of dramatic gains, recent declines indicate that mortgage rates are stabilizing somewhat.

Even if rates go down, they are still 2% higher than where they ended in 2021. Higher rates have bought demand for homes as more buyers find themselves being priced out of the market.

Today’s mortgage rate

Today’s Refinancing Rates

Mortgage calculation

Use our free mortgage calculator to see how current interest rates will affect your monthly payments:

Mortgage calculation

Your Estimated Monthly Payment

  • pay a 25% higher deposit would save you! $8,916.08 on interest charges
  • Reduction of interest by 1% would you save $51,562.03
  • Pay extra $500 each month would reduce the length of the loan by 146 months

By clicking on ‘More details’ you will also see how much you will pay over the entire term of your mortgage, including how much goes to principal versus interest.

Will mortgage rates go up?

Mortgage rates started rising from an all-time low in the second half of 2021 and may continue to rise in 2022.

In April, the consumer price index rose 8.3% year-on-year – a slight slowdown from March. The

Federal Reserve

has worked to bring inflation under control and plans to raise the federal funds target five more times this year, following a 0.25% increase at the March meeting and a 0.5% increase in May.

While not directly linked to federal fund rates, mortgage rates are often pushed up as a result of Fed rate hikes. As the central bank continues to tighten monetary policy to lower inflation, mortgage interest rates are likely to remain high.

What do high rates mean for the housing market?

When mortgage rates rise, home buyers’ purchasing power declines because a larger portion of their projected housing budget must be spent on paying interest. If rates get high enough, buyers could be priced out of the market entirely, cooling demand and putting downward pressure on home price growth.

However, that doesn’t mean house prices will fall — in fact, they’re expected to rise even more this year, just at a slower pace than what we’ve seen in recent years.

What is a good mortgage interest deduction?

It can be difficult to know if a lender is offering you a good rate, which is why it is so important to get pre-approved with multiple

mortgage lenders

and compare each offer. Request pre-approval from at least two or three lenders.

Your rate isn’t all that matters. Be sure to compare both your monthly fees and your initial fees, including any lenders.

While mortgage rates are heavily influenced by economic factors beyond your control, there are some things you can do to make sure you get a good rate:

  • Consider fixed versus adjustable rates. You may be able to get a lower introductory rate with an adjustable-rate mortgage, which can be good if you plan to move before the introductory period ends. But a flat rate may be better if you’re buying a home forever because you don’t run the risk of your rate rising later. Look at the rates your lender offers and weigh your options.
  • Look at your finances. The stronger your financial situation, the lower your mortgage interest rate should be. Look for ways to raise your credit score or lower your debt-to-income ratio, if necessary. Saving for a higher down payment also helps.
  • Choose the right lender. Each lender charges different mortgage interest rates. By choosing the right one for your financial situation, you can get a good rate.

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