30-Year Mortgage Rates for August 2022

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Home prices and mortgage rates were predicted to rise in 2022, and so far this has come true.

If you’re shopping for a home, here’s what to consider when comparing mortgage lenders and the 30-year fixed mortgage rate.

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The Latest Mortgage Rate & Housing News

What’s Going On With Rising Mortgage Rates?

The surge in mortgage rates so far this year is due to a variety of economic factors. Persistently high inflation is a big one, Jacob Channel, senior economic analyst at LendingTree told us. July’s inflation report shows 8.5% inflation which is lower than June’s 9.1%, a sign that inflation is starting to cool. In response, the Federal Reserve increased its benchmark short-term interest rate to combat that inflation. The Fed raised rates by 50 basis points in May, 75 points in June, and by another 75 points in July.

Recently, we saw mortgage rates surge after the inflation report and ahead of the Fed’s announcement. “I think what we’re seeing is that lenders had already anticipated that the Fed was going to raise the fed funds rate by 75 basis points and they began to preemptively push mortgage rates up,” Jacob Channel, senior economist at LendingTree, told us.

Energy prices are half responsible for these increases, Dawit Kebede, senior economist for the Credit Union National Association, said in a statement. “There are signs that some of the main drivers of inflation are easing, such as lower oil and other commodity prices in July, slower wage growth, and declining supply chain pressures. However, service price increases led by housing and pent-up demand for vehicles will keep inflation elevated in the coming months.”

What Can Homebuyers Do About Rising Mortgage Rates?

A higher mortgage rate leads to a higher monthly payment, which can eat into your total buying power. But, experts also point out that these 5.5+% rates we are seeing right now are still considered normal from a historical perspective. It was only a few short years ago when a “good rate” was around 5%. 

Rising mortgage rates also mean the rate you might be quoted one day could be significantly different than one you get the next day. Experts caution against trying to time the market to get the best rate. “If you think you’re going to like the rate, lock it,” Jennifer Beeston, senior vice president of mortgage lending at Guaranteed Rate, told us. “Because it’s probably going to change in 20 minutes.”

Be sure to get quotes from different lenders to ensure you’re getting the best deal, experts say. “The rate highly impacts your monthly affordability for as long as you will hold this home,” Skylar Olsen, principal economist at Tomo, a digital real estate and mortgage company, told us. “It is actually a critical piece of this decision, and that takes shopping around.”

What Can Homebuyers Do About Rising Home Prices?   

When thinking about your mortgage rate, it’s also important to consider what’s happening to housing prices. According to data from Realtor.com, the median U.S. home listing price was $449,000 in July 2022, another all-time high. Experts say the big uptick in prices is due to a mismatch between supply and demand: There are a lot of people trying to buy houses, and there aren’t enough houses to go around. That means you probably shouldn’t wait around and hope for the market to crash. “I don’t think buyers should be betting on any really significant price declines,” Robert Dietz, chief economist at the National Association of Home Builders, told us

What you can do is think beyond just the mortgage rate. Be sure you’re in a good position to buy a house. “The most important thing that any would-be homebuyer should do is take stock of where they are personally,” said Channel. “Do I have enough cash to make my mortgage payments, to put money down on a down payment? Is my credit score good?” Then, be patient and be creative with your home search. Don’t rush for the first houses you see, he says. Look in unexpected places. One possibility is the U.S. Department of Housing and Urban Development’s page of foreclosed homes. “The more you plan and the more diligent you are before you really even start going out house hunting actively, the easier it is to navigate a housing market that is as hot and fast as this one,” Channel says.

It’s more important than ever to shop around for a mortgage when you’re in the market for a house, said Channel. When rates aren’t going up as dramatically as they are now, quotes from different lenders can regularly vary by half a percentage point. With the market moving so quickly, that could be even higher. 

NextAdvisor’s Best 10 Mortgage Lenders.

History of the 30-Year Fixed Mortgage Rate

This chart, which uses data from a survey by Freddie Mac that differs slightly but generally tracks with the Bankrate survey used by NextAdvisor, offers a glimpse at how today’s rates compare with the past two decades. According to the chart, mortgage rates are up from the historically low years of 2020 and 2021, but they still aren’t high if you zoom out more than a few years.

Keep today’s rates in perspective. Rates below 5% were pretty rare before 2011, and rates between 4% and 5% were fairly common before the pandemic, Paul Thomas, vice president of capital markets for mortgages at Zillow Group, told us. “As a homebuyer, it’s important to keep in mind that while mortgage rates have gone up this year, they’re still at historic lows.”

Compare Multiple Lenders

Whether you are looking to refinance or purchase, you can compare lender offers here using this Home Loan Comparison Calculator. You can enter in the loan amount, rate, fees, and term for each offer and see a true side-by-side comparison. 

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Compare your payment options side-by-side to see which is right for you and your financial situation.

Find the mortgage that’s best for you by comparing the cost of multiple loans over time.

The Pros and Cons: When to Consider a 30-year Fixed Mortgage

There are a handful of advantages to a 30-year fixed-rate mortgage that make it the right choice in many cases. But choosing a mortgage is a highly personal decision and there are certain situations where a 30-year fixed mortgage isn’t the best fit.

Pros

  • Lowest mortgage and interest payment of any loan repayment term

  • Interest rate never changes, the only way your monthly payments can increase is if your property taxes or homeowners insurance go up

  • Increases your buying power because you’re spreading the cost out over a longer timeframe

Cons

  • Shorter-term loans typically have lower interest rates

  • By paying the loan over a longer period of time, you will pay more in total interest 

  • Refinancing to a new 30-year loan could have years or decades onto your mortgage

What Are Today’s 30-Year Fixed Mortgage Rates?

On Sunday, August 14, 2022 according to Bankrate’s latest survey of the nation’s largest mortgage lenders, the average 30-year fixed mortgage rate is 5.530% with an APR of 5.540%. The average 30-year fixed mortgage refinance rate is 5.510% with an APR of 5.520%.

Current 30-Year Mortgage Rates

ProductInterest RateAPR
30-Year Fixed Rate5.510%5.520%
30-Year FHA Rate4.690%5.540%
30-Year VA Rate4.750%4.930%
30-Year Fixed Jumbo Rate5.510%5.510%
20-Year Fixed Rate5.500%5.510%
15-Year Fixed Rate4.860%4.880%
15-Year Fixed Jumbo Rate4.870%4.880%
10-Year Fixed Rate4.940%4.970%
5/1 ARM Rate4.180%5.990%
5/1 ARM Jumbo Rate4.170%5.820%
7/1 ARM Rate5.100%5.650%
7/1 ARM Jumbo Rate5.180%5.580%
10/1 ARM Rate5.160%5.550%
ProductInterest RateAPR
30-Year Fixed Rate5.530%5.540%
30-Year FHA Rate4.780%5.620%
30-Year VA Rate4.750%4.860%
30-Year Fixed Jumbo Rate5.520%5.530%
20-Year Fixed Rate5.590%5.610%
15-Year Fixed Rate4.910%4.940%
15-Year Fixed Jumbo Rate4.950%4.970%
10-Year Fixed Rate4.940%4.970%
5/1 ARM Rate4.220%6.090%
5/1 ARM Jumbo Rate4.200%6.100%
7/1 ARM Rate5.090%5.670%
7/1 ARM Jumbo Rate5.190%5.590%
10/1 ARM Rate5.150%5.570%

Rates as of Sunday, August 14, 2022

ABOUT THESE RATES

These rate averages are based on weekday mortgage rate information provided by national lenders to Bankrate.com, which like NextAdvisor is owned by Red Ventures. These averages provide borrowers a broad view of average rates that can inform borrowers when comparing lender offers. We feature both the interest rate and the annual percentage rate (APR), which includes additional lender fees, so you can get a better idea of the overall cost of the loan. The actual interest rate you can qualify for may be different from the average rates quoted in our rate table. But these rates are useful for giving you a benchmark to use when comparing loan offers by giving you a sense of how the type of mortgage and the length of the repayment term impacts your interest rate and APR.

Is a 30-Year Fixed Mortgage Right for Me?

Whether or not a 30-year fixed-rate mortgage is right for you depends on your personal situation. Everything from your income to where you want to live can impact the decision.

A 30-year fixed mortgage can be ideal for a first-time homebuyer because of the lower monthly payment. But as your income increases, you may want to refinance to a shorter-term loan to reduce the interest you’ll pay over the life of the loan.

There are even circumstances where adjustable-rate mortgages (ARM) can make sense. If you know you will be moving before the interest rate adjusts, an ARM may be cheaper than a 30-year fixed rate mortgage for those first few years. Although, in today’s low rate environment, an ARM loan makes less sense for homebuyers than it usually would.

How Do I Refinance a 30-Year Mortgage?

Refinancing is when you replace your existing mortgage with a new home loan. When 30-year refinance rates are significantly lower than your existing mortgage rate, you may be able to save money with a refinance. Keep in mind that the potential savings will need to outweigh the upfront closing costs you’ll pay to refinance, which are typically 3% to 6% of the loan balance.

Another factor to consider when you refinance is, how many years have you been paying off your current mortgage? If you’re 10 years into a 30-year loan, taking out a new 30-year mortgage adds those 10 years back onto your repayment term. Even though you may be lowering your monthly payment and rate in that scenario, you could end up paying more interest over the long term even if you have a lower rate.

For more information on how to refinance a mortgage, see NextAdvisor’s refinance page

Frequently Asked Questions (FAQ):

How do I find a personalized 30-year mortgage rate?

To find personalized 30-year mortgage rates you’ll have to share a bit about your finances with potential mortgage lenders. They will need information, like your income, credit history, and other debts.

You can usually get a ballpark estimate from lenders by sharing this information with them over the phone. However, to get preapproved for a mortgage you will need to verify everything with documentation and a credit check. Being preapproved for a mortgage will give you an idea of what mortgage rate you qualify for, but the rate won’t be locked in until after you submit an application and are approved for the loan. Even then, you’ll want to confirm with the lender that your rate is locked and how long the rate lock will be valid for.

When you’re shopping for rates, it will benefit you to reach out to at least two or three lenders. Every mortgage lender will evaluate your finances differently, and the fees and interest rate you are quoted will differ from one lender to the next.

What is a good 30-year fixed mortgage rate?

During the pandemic, the average 30-year fixed mortgage rate fell below 3% for the first time since the Federal Reserve began tracking mortgage rates. Since then, rates have climbed back above 5% to where they sit today. 

Certain mortgages typically have higher rates, like loans for investment properties, jumbo loans, and cash-out refinance mortgages. So a slightly higher rate for one of these types of loans can still be a great deal.

How do I compare current 30-year fixed mortgage rates?

Comparing 30-year fixed mortgage rates isn’t as straightforward as looking at the mortgage interest rates you qualify for with different lenders. This is because a mortgage interest rate doesn’t account for mortgage fees. To get an understanding of the overall cost of your home loan, you need to also compare annual percentage rates (APR), which factor in other costs like loan origination fees and discount points.

After you apply for a mortgage you’ll get what is known as a Loan Estimate from the lender. Learning how to read a Loan Estimate is important because it shows an estimate of every fee the lender is charging you. Since every Loan Estimate form is the same, it’s a vital tool for comparing mortgage lenders and for keeping your closing costs low.