Daily mortgage rates at the end of the week lower | 14 and 15 May 2022

Daily average mortgage rates trended lower this week. The interest rate on a 30-year fixed-rate mortgage is now 5.788%. It is 0.151 percentage points lower than last week and 0.066 percentage points lower than a month ago.

Despite the recent decline, interest rates have been trending higher since the beginning of the year and are now far from record lows. The best way to find the lowest interest rate is to make sure your credit is in good condition and to get price quotes from multiple lenders.

  • The latest interest rate on a 30-year fixed-rate mortgage is 5.788%. ⇓
  • The latest interest rate on a 15-year fixed-rate mortgage is 4.857%. ⇓
  • The latest price of a 5/1 ARM is 4.242%. ⇓
  • The latest price of a 7/1 ARM is 4.575%. ⇓
  • The latest price of a 10/1 ARM is 4.72%. ⇓

Money’s daily mortgage rates are a national average and reflect what a borrower with a down payment of 20% and a credit score of 700 – roughly the national average score – can pay if he or she is currently applying for a home loan. Everyday interest rates are based on the average interest rate of 8,000 lenders offered to applicants the previous business day. Freddie Mac’s weekly rates will generally be lower as they measure rates offered to borrowers with higher credit ratings. Your individual rate will vary depending on your location, lender and financial details.

Are you looking for a loan? Check out Money’s lists of the best mortgage lenders and the best refinancing lenders.

Today’s 30-year mortgage rates with a fixed interest rate

  • The 30-year interest rate is 5.788%.
  • It’s a day thefold at 0.262 percentage points.
  • It’s a month thefold at 0.066 percentage points.

Most borrowers choose a 30-year fixed-rate mortgage. They are attracted by the long repayment period, which results in relatively low monthly payments. The predictable interest rate also makes the budgeting of the loan easier. The disadvantage is that the interest rate is higher compared to other types of loans. Since you will pay a higher interest rate for more time, you will spend more on total borrowing costs.

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Average mortgage rates

Data based on US mortgages closed on May 12, 2022

Type of loan 12 May Last week Change
15 years fixed conventional 4.86% 5.05% 0.19%
30 years fixed conventional 5.79% 6.34% 0.55%
7/1 ARM speed 4.58% 4.65% 0.07%
10/1 ARM speed 4.72% 4.8% 0.08%

Your actual course may vary

Today’s 15-year fixed interest rate on mortgage rates

  • The 15-year interest rate is 4.857%.
  • It’s a day thefold at 0.143 percentage points.
  • It’s a month reduce of 0.324 percentage points.

Some borrowers choose the lower interest rate and the shorter term for a 15-year fixed-rate mortgage. These borrowers will save money by not having to pay the same amount of interest throughout the loan period. However, since the loan has to be repaid in a shorter period of time, the monthly payments will be much higher than for a similar 30-year loan.

Use a mortgage calculator to determine which option is best for you.

The latest interest rates on mortgages with adjustable interest rates

  • The latest price of a 5/1 ARM is 4.242%. ⇓
  • The latest price of a 7/1 ARM is 4.575%. ⇓
  • The latest price of a 10/1 ARM is 4.72%. ⇓

The interest rate on a fixed-rate mortgage will be fixed for a number of years before it becomes variable and changes periodically. The interest rate on a 5/1 ARM, for example, will be fixed for the first five years of the loan, then adjusted annually for the remainder of the loan period. While the initial interest rate is usually low, there can be a large increase when the interest rate becomes variable.

The latest VA, FHA and jumbo loan rates

The average prices for FHA, VA and jumbo loans are:

  • The interest rate on a 30-year FHA loan is 5.433%. ⇓
  • The interest rate on a 30-year VA loan is 5.529%. ⇓
  • The interest rate on a 30-year jumbo loan is 5.184%. ⇔

The latest interest rates for mortgage refinancing

The average refinancing rates for 30-year loans, 15-year loans and ARM are:

  • The refinancing rate on a 30-year fixed-rate refinancing is 6.097%. ⇓
  • The refinancing rate on a 15-year fixed-rate refinancing is 5.149%. ⇓
  • The refinancing rate on a 5/1 ARM is 4.539%. ⇓
  • The refinancing rate on a 7/1 ARM is 4.88%. ⇓
  • The refinancing rate on a 10/1 ARM is 5.081%. ⇓
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Average refinancing rates for mortgages

Data based on US mortgages closed on May 12, 2022

Type of loan 12 May Last week Change
15 years fixed conventional 5.15% 5.24% 0.09%
30 years fixed conventional 6.1% 6.57% 0.47%
7/1 ARM speed 4.88% 4.9% 0.02%
10/1 ARM speed 5.08% 5.17% 0.09%

Your actual course may vary

Where are mortgage rates heading this year?

Mortgage rates fell until 2020. Millions of homeowners responded to low mortgage rates by refinancing existing loans and taking out new ones. Many people bought homes that they might not be able to afford if prices were higher. In January 2021, prices fell briefly to the lowest levels ever, but the trend was slightly higher for the rest of the year.

Looking ahead, experts believe that interest rates will rise more in 2022, but also modestly. Factors that can affect prices include continued economic improvement and more gains in the labor market. The Federal Reserve has also begun reducing its purchases of mortgage-backed securities and raised federal funds rates for the first time in March to combat rising inflation. The Fed has signaled that six more increases are likely this year.

Although mortgage rates are likely to rise, experts say the increase will not happen overnight and there will not be a dramatic jump. Interest rates should remain close to historically low levels during the first half of the year and rise slightly later in the year. Even with rising interest rates, it will still be a favorable time to finance a new home or refinance a mortgage.

Factors that affect mortgage rates include:

  • Federal Reserve. The Fed took swift action when the pandemic hit the United States in March 2020. The Fed announced plans to keep money moving through the economy by lowering short-term Federal Fund interest rates to between 0% and 0.25%, which is as low as they go. The central bank also promised to buy securities and government bonds with mortgages, which support the housing finance market, but began to reduce these purchases in November.
  • The 10-year government bond. Mortgage rates lock in with the interest rates on the government’s 10-year government bond. Interest rates fell below 1% for the first time in March 2020 and have risen since then. On average, there is usually a “spread” of 1.8 points between government interest rates and the benchmark on mortgage rates.
  • The broader economy. Unemployment and changes in gross domestic product are important indicators of the general health of the economy. When employment and GDP growth are low, it means that the economy is weak, which can push down interest rates. Thanks to the pandemic, unemployment levels reached an all-time high at the beginning of last year and have not yet recovered. GDP also suffered a setback, and although it has bounced back somewhat, there is still much room for improvement.

Tips for getting the lowest possible mortgage rate

There is no universal mortgage rate that all borrowers receive. Qualifying for the lowest mortgage rates requires little work and will depend on both personal financial factors and market conditions.

Check your credit rating and credit report. Errors or other red flags can lower your credit score. Borrowers with the highest credit values ​​are the ones who will get the best rates, so it is important to check your credit information before you start looking for a home. Taking action to correct mistakes will help you raise your score. If you have high credit card balances, paying them down can also provide a quick increase.

Save money on a substantial down payment. This will lower your loan-to-value ratio, which means how much of the home price the lender must finance. A lower LTV usually leads to a lower mortgage rate. Lenders also like to see money that has been saved in an account for at least 60 days. It tells the lender that you have the money to finance the home purchase.

Look around for the best price. Do not settle for the first interest rate offered by a lender. Check with at least three different lenders to see who offers the lowest interest rates. Also think about different types of lenders, such as credit unions and online lenders in addition to traditional banks.

Also take the time to find out about different loan types. While the 30-year fixed rate mortgage is the most common type of mortgage, consider a shorter loan such as a 15-year loan or an adjustable rate mortgage. These types of loans often have a lower interest rate than a conventional 30-year mortgage. Compare the costs for everyone to see which one best suits your needs and financial situation. Government loans – such as those supported by the Federal Housing Authority, the Department of Veterans Affairs and the Department of Agriculture – may be more affordable options for those who qualify.

Finally, lock in your course. Locking down your interest rate once you have found the right interest rate, loan product and lender will help ensure that your mortgage rate does not increase before you end the loan.

Our mortgage interest rate methodology

Money’s daily mortgage rates show the average interest rates offered by over 8,000 lenders across the United States, the latest banking day rates are available. Today we show prices for Thursday, May 12, 2022. Our prices reflect what a typical borrower with a credit score of 700 can expect to pay for a home loan right now. These prices were offered to people who put down 20% and include discount points.

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