Today’s Mortgage Rates & Trends, June 30, 2022

30-Year Slips to 6.26%; 15-Year Dips to 5.36%

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The average 30-year mortgage rate ticked down slightly to stop a three-day rise, alongside a modest dip in the average 15-year fixed mortgage rate.

The average rate for a 30-year conventional fixed mortgage inched down to 6.26% from 6.27% the previous business day. Similarly, the 15-year rate crawled down to 5.36% from 5.38% the previous business day. Our mortgage rate data dates back to 2020, but if other measures are any indication, both rates are near their highest levels in over a decade.

Fixed mortgage rates tend to track the direction of 10-year Treasury yields, which usually rise with heightened inflation fears (and fall when those fears subside). 10-year Treasury yields have generally spiked this year because of the Federal Reserve’s ongoing campaign to raise interest rates to combat inflation and are now more than double their 2021 numbers.

During the pandemic, ultra low rates bolstered buying power, allowing house hunters to buy more expensive homes with the same monthly budget and helping fuel a fiercely competitive residential real estate boom characterized by rapidly rising prices. But interest rates have moved much higher this year, putting a home purchase out of reach for many prospective buyers. The Freddie Mac average 30-year rate—which dates back much further than our data and is collected weekly—is close to its highest level since November 2008 (though still relatively low compared to the double digits of the 1980s and early 1990s). 

Note

Mortgage rates, like the rates on any loan, are going to depend on your credit score, with lower rates going to people with better scores, all else being equal. The rates shown reflect the average offered by more than 200 of the country’s top lenders, assuming the borrower has a FICO credit score of 700-759 (within the “good” or “very good” range) and a loan-to-value ratio of 80%. They also assume the borrower doesn’t purchase any mortgage or “discount” points. Other measures of rates may differ because they assume that the borrower does purchase points or has a higher credit score. These measures may also track the lowest possible rate advertised (rather than the average,) or reflect data collected once a week rather than daily.

Borrowers pay discount points, or upfront fees, to obtain a lower interest rate, spending more initially to save in the long run. Whether or not you should pay points depends on how long you plan to keep the loan. Here’s how to calculate that.

30-Year Mortgage Rates Are Mixed

A 30-year fixed mortgage is by far the most common type of mortgage because it offers a consistent and relatively low monthly payment. (Shorter-term fixed mortgages have higher payments because the borrowed money is paid back more quickly.) 

Besides conventional 30-year mortgages, some are backed by the Federal Housing Authority (FHA) or the Department of Veterans Affairs (VA). FHA loans offer borrowers with lower credit scores or a smaller down payment a better deal than they might otherwise get; VA loans let current or past members of the military and their families skip a down payment.

  • 30-year fixed: The average rate fell to 6.26%, down from 6.27% the previous business day. A week ago, it was 6.21%. For every $100,000 borrowed, monthly payments would cost about $616.37, or $3.25 more than a week ago.
  • 30-year fixed (FHA): The average rate rose to 6.18%, up from 6.12% the previous business day. A week ago, it was 6.13%. For every $100,000 borrowed, monthly payments would cost about $611.17, or $3.24 more than a week ago.
  • 30-year fixed (VA): The average rate rose to 6.19%, up from 6.13% the previous business day. A week ago, it was 6.22%. For every $100,000 borrowed, monthly payments will cost about $611.82, or $1.95 less than a week ago.

Note

A lower rate can lower your monthly payment, but it can also give you more buying power, something you’ll want if you’re considering jumping into this fiercely competitive real estate market. For example, at 4% on a 30-year mortgage, your payments for a $380,000 home would be about $2,069 a month, assuming a 20% down payment, typical homeowners’ insurance costs, and property taxes. If you lock in a rate at 3.5%, though, you’ll have about the same monthly payment for a $397,500 home. To do the math specific to your situation, use our mortgage calculator below.

15-Year Mortgage Rate Declines

The major advantage of a 15-year fixed mortgage is that it offers a lower interest rate than the 30-year and you’re paying off your loan more quickly, so your total borrowing costs are far lower. But for the same reason—that the loan is paid back over a shorter time frame—the monthly payments will be higher.

  • 15-year fixed: The average rate fell to 5.36%, down from 5.38% the previous business day. A week ago, it was 5.33%. For every $100,000 borrowed, monthly payments would cost about $809.67, or $1.58 more than a week ago.

Note

Besides fixed-rate mortgages, there are adjustable-rate mortgages (ARMs), where rates change based on a benchmark index tied to Treasury bonds or other interest rates. Most adjustable-rate mortgages are actually hybrids, where the rate is fixed for a period of time and then adjusted periodically. For example, a common type of ARM is a 5/1 loan, which has a fixed rate for five years (the “5” in “5/1”) and is then adjusted every one year (the “1”).

Jumbo Mortgage Rates Hold Steady or Fall

Jumbo loans, which allow you to borrow bigger amounts for more expensive properties, tend to have slightly higher interest rates than loans for more standard amounts. Jumbo means over the limit that Fannie Mae and Freddie Mac are willing to buy from lenders, and that limit went up in 2022. For a single-family home, it’s now $647,200 (except in Hawaii, Alaska, and a few federally designated high-cost markets, where the limit is $970,800).

  • Jumbo 30-year fixed: The average rate remained at 5.27%, unchanged from the previous business day. A week ago, it was also 5.27%. For every $100,000 borrowed, monthly payments would cost about $553.44, the same as a week ago.
  • Jumbo 15-year fixed: The average rate fell to 5.15% from 5.27% the previous business day. A week ago, it was also 5.27%. For every $100,000 borrowed, monthly payments would cost about $798.63, or $6.30 less than a week ago.

Refinance Rates Decrease

Refinancing an existing mortgage tends to be slightly more expensive than getting a new one, especially in a low-rate environment. 

  • 30-year fixed: The average rate to refinance fell to 6.58% from 6.59% the previous business day. A week ago, it was 6.53%. For every $100,000 borrowed, monthly payments would cost about $637.34, or $3.30 more than a week ago.
  • 15-year fixed: The average rate to refinance fell to 5.63% from 5.68% the previous business day. A week ago, it was 5.55%. For every $100,000 borrowed, monthly payments would cost about $824.00, or $4.26 more than a week ago.

Methodology

Our rates for “today” reflect national averages provided by more than 200 of the country's top lenders one business day ago, and the “previous” is the rate provided the business day before that. Similarly, the week earlier references compare the data from five business days earlier (so bank holidays are excluded.) The rates assume a loan-to-value ratio of 80% and a borrower with a FICO credit score of 700 to 759—within the “good” to “very good” range. They’re representative of the rates customers would see in actual quotes from lenders, based on their qualifications, and may vary from advertised teaser rates.

Have a question, comment, or story to share? You can reach Diccon at dhyatt@thebalance.com and Terry at tlane@thebalance.com.

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Additional research by
David Rubin
David J. Rubin

David J. Rubin is a fact checker for The Balance with more than 30 years in editing and publishing. The majority of his experience lies within the legal and financial spaces. At legal publisher Matthew Bender & Co./LexisNexis, he was a manager of R&D, programmer analyst, and senior copy editor.

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Sources
The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.
  1. Board of Governors of the Federal Reserve System. “Federal Reserve Issues FOMC Statement, June 15, 2022.”

  2. Yahoo! Finance. “Treasury Yield 10 Years.”

  3. Freddie Mac. “Mortgage Rates.”

  4. Federal Housing Finance Agency. “FHFA Announces Conforming Loan Limits for 2022.”

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