Today’s mortgage and refinance rates: June 21, 2022 | Demand drops as rates rise

Mortgage rates moderated slightly toward the end of last week, but they’re still higher than they have been in recent weeks. News of increasing inflation and larger than expected Federal Reserve rate hikes created some volatility in the markets in the past couple of weeks, which caused mortgage rates to rise. 

Rates are up dramatically compared to this time last year. Rising rates have cut into affordability for homebuyers, which has led to a drop in demand for homes. 

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 term lengths and interest rates, you’ll see how your monthly payment could change.

Are mortgage rates going up?

Mortgage rates started ticking up from historic lows in the second half of 2021, and may continue to increase throughout 2022.

In the last 12 months, the Consumer Price Index rose by 8.6%. The Federal Reserve has been working to get inflation under control, and plans to increase the federal funds target rate four more times this year, following increases in March, May, and June.

Though not directly tied to the federal funds rate, mortgage rates are often pushed up as a result of Fed rate hikes. As the central bank continues to tighten monetary policy to lower inflation, it’s likely that mortgage rates will remain elevated.

What do high rates mean for the housing market?

When mortgage rates go up, home shoppers’ buying power decreases, as more of their anticipated housing budget has to go toward paying interest. If rates get high enough, buyers can get priced out of the market completely, which cools demand and puts downward pressure on home price growth.

However, that doesn’t mean home prices will fall — in fact, they’re …read more

Source:: Businessinsider

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