Average mortgage rates rose this week, after two straight weeks of decline. The average 30-year fixed mortgage rate is now 5.51%. Average 15-year fixed and 5/1 adjustable mortgage rates also rose.

Rates started the week relatively high, but fell as the Bureau of Labor Statistics released its latest Consumer Price Index data. The CPI report showed prices rose at an even faster pace in June than they had in previous months, at a year-on-year rate of 9.1 %. Fears that such a high inflation rate could lead to a

recession

fueled a slight decline in mortgage rates, although they have since rebounded and are now holding steady.

Today’s Mortgage Rates

Today’s Refinance Rates

mortgage calculator

Use our free mortgage calculator to see how today’s mortgage rates will affect your monthly and long-term payments.

By plugging in different terms and interest rates, you’ll see how your monthly payment might change.

Are mortgage rates increasing?

Mortgage rates started to recover from historic lows in the second half of 2021 and may continue to rise throughout 2022.

Over the past 12 months, the consumer price index has increased by 9.1%. The

Federal Reserve

has worked to keep inflation under control and plans to raise the federal funds target rate four more times this year, following increases in March, May and June.

Although not directly tied to the federal funds rate, mortgage rates are often pushed higher by Fed rate hikes. As the central bank continues to tighten monetary policy to reduce inflation, mortgage rates are likely to remain high.

What do high rates mean for the housing market?

When mortgage rates rise, homebuyers’ purchasing power declines, as more of their projected housing budget must be spent on interest payments. If rates get high enough, buyers can be shut out of the market altogether, cooling demand and putting downward pressure on home price growth.

However, that doesn’t mean house prices will go down – in fact, they’re expected to rise even more this year, just at a slower pace than what we’ve seen over the past two years.

What is a good mortgage rate?

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

mortgage lenders

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

Your price isn’t the only thing that matters. Be sure to compare both your monthly costs and your upfront costs, including lender fees.

Although mortgage rates are heavily influenced by economic factors beyond your control, there are steps you can take to ensure you get a good rate:

• Consider fixed rates versus adjustable rates. You may be able to get a lower introductory rate with an adjustable rate mortgage, which can be beneficial if you plan to move before the end of the introductory period. But a fixed rate might be better if you’re buying a house forever, because you don’t risk your rate going up later. Examine the rates offered by your lender and weigh your options.
• Look at your finances. The stronger your financial situation, the lower your mortgage rate should be. Look for ways to increase your credit score or reduce your debt ratio, if necessary. Saving for a larger down payment also helps.
• Choose the right lender. Each lender charges different mortgage rates. Choosing the right one for your financial situation will help you get a good rate.