Today’s Mortgage, Refinance Rates: May 21, 2022


Mortgage rates are finally moderating after months of rapid increases. On Friday, the 30-year fixed mortgage rate was just below 5%, according to Zillow.

For the past several weeks, rates have held strong above 5%, so the current cooling may be a sign that we’ve reached a peak. But with so much uncertainty in the economy, it’s possible rates could still climb higher this year.

Even with rates holding steady, homebuyers are still in a tricky spot when it comes to affordability. Mortgage rates are over two percentage points higher now than they were a year ago, according to Freddie Mac data, and home prices remain high. However, high rates typically curb homebuying demand, so buyers who can afford to buy in the current market may find they’re up against less competition.

Mortgage refinance rates today

Mortgage calculator

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

Mortgage Calculator

$1,161
Your estimated monthly payment

  • Paying a 25% higher down payment would save you $8,916.08 on interest charges
  • Lowering the interest rate by 1% would save you $51,562.03
  • Paying an additional $500 each month would reduce the loan length by 146 months

By clicking on “More details,” you’ll also see how much you’ll pay over the entire length of your mortgage, including how much goes toward the principal vs. interest.

30-year fixed mortgage rates

The current average 30-year fixed mortgage rate is 5.25%, according to Freddie Mac. This is the first week this rate has decreased since late April, when it just barely inched down from 5.11% to 5.10%. Prior to that, rates had been rising consistently since early March, when they were still below 4%. 

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

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

15-year fixed mortgage rates

The average 15-year fixed mortgage rate is 4.43%, a slight decrease from the prior week, according to Freddie Mac data. This is the second week in a row this rate has dropped.

If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you’ll 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 4.08%. This is a slight increase from last week and marks the first time this rate has gone over 4% since 2018.

Adjustable rate mortgages can look very attractive to borrowers when rates are high, because the rates on these mortgages are typically lower than fixed mortgage rates. A 5/1 ARM is a 30-year mortgage. For the first five years, you’ll have a fixed rate. After that, your rate will adjust once per year. If rates are higher when your rate adjusts, you’ll have a higher monthly payment than what you started with.

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

Will mortgage rates go up in 2022?

To help the US economy during the COVID-19 pandemic, the


Federal Reserve

aggressively purchased assets, including mortgage-backed securities. This helped keep mortgage rates at historic lows.

However, the Fed is now planning to reduce the assets it holds and is expected to increase the federal funds rate five more times in 2022, following increases in March and May.

Average mortgage rates have ticked up recently, and the Fed’s announcements indicate that mortgage rates may continue to increase in 2022. You may want to lock in a rate now instead of risk a higher rate later, but don’t rush to buy a home if you aren’t ready.

What is a fixed-rate mortgage vs. adjustable-rate mortgage?

Historically, adjustable mortgage rates tend to be lower than 30-year fixed rates. When mortgage rates go up, ARMs can start to look like the better deal — but it depends on your situation. 

Fixed-rate mortgages lock in your rate for the entire life of your loan. Adjustable-rate mortgages lock in your rate for the first few years, then your rate goes up or down periodically.

Because adjustable rates start low, they are worthwhile options if you plan on selling your home before the interest rate changes. For instance, if you get a 7/1 ARM and want to move before the seven year fixed-rate period is up, you won’t risk paying a higher rate later.

But if you want to buy a forever home, a fixed rate could still be a better fit, since you won’t chance your rate increasing in a few years.



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