Today’s Mortgage and Refinancing Rates: April 29, 2022

The average 30-year fixed mortgage rate is 5.10% this week, according to Freddie Mac, marking the second straight week that rates have stayed above 5%. However, this is the first time in eight weeks that the average weekly rate has not increased. Last week it was at 5.11%.

As rates have already increased this year and could continue to rise, homebuyers need to get affordability where they can by buying the lowest available rate and once they find it, locking in that rate.

“As the coming weeks and even months remain unpredictable, it’s a good idea to evaluate and track your qualifying mortgage options with the goal of securing a loan option,” says Robert Heck, vice president of mortgages at Morty. “Locking a fee is typically not mandatory and you can always re-evaluate your options as things progress.”

Today’s mortgage rates

Today’s Refinancing Rates

mortgage calculator

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

mortgage calculator

Your estimated monthly payment

  • paying a 25% a higher advance would save you US$ 8,916.08 about interest
  • Lowering the interest rate by 1% would save you $51,562.03
  • paying an additional $500 each month would reduce the duration of the loan by 146 months

When you click “More Details”, you’ll also see how much you’ll pay over the entire term of your mortgage, including how much goes towards principal versus interest.

Are mortgage rates going up?

Mortgage rates began rising from historic lows in the second half of 2021 and will likely continue to rise throughout 2022.

In March, the Consumer Price Index hit an annual rate of 8.5%, the fastest rate of inflation since 1981.

Federal Reserve

has been working to rein in inflation and plans to raise the federal funds target rate six more times this year, following a 0.25% increase at its March meeting.

While not directly tied to the federal funds rate, mortgage rates are often increased as a result of increases in Fed rates. 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 go up, the purchasing power of homebuyers declines as more of their upfront housing budget needs to be directed towards interest payments. If rates get high enough, buyers can exit the market altogether, which cools demand and puts downward pressure on home price growth.

However, that doesn’t mean home prices are going to fall – in fact, they’re set to rise even higher this year, just at a slower pace than we’ve seen in the last couple of years.

While high rates will dampen demand, low inventory will continue to drive prices higher, says Ralph DiBugnara, president of Home Qualified and senior vice president of Cardinal Financial.

“There is such a shortage that even if 50% of people stopped looking today, there would still be high demand,” he says. “So I think because of that demand, you’re going to see prices go up for at least another 18 to 24 months.”

What is a good mortgage rate?

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

mortgage lenders

and compare each offer. Request pre-approval with at least two or three creditors.

Your rate isn’t the only thing that matters. Be sure to compare what your monthly costs would be as well as your upfront costs, including any lender fees.

While mortgage rates are heavily influenced by economic factors that are out of your control, there are a few things you can do to help ensure you get a good rate:

  • Consider flat fees vs. adjustable. You can get a lower starting rate with an adjustable rate mortgage, which can be good if you plan on moving before the start period ends. But a flat rate might be better if you’re buying a house forever, because you don’t risk your rate going up later. See the rates your lender offers and evaluate your options.
  • Look at your finances. The stronger your financial situation, the lower your mortgage 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 rates. Choosing the right one for your financial situation will help you get a good rate.

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