Today's mortgage and refinance rates: July 12, 2022 | Rates up slightly

Mortgage rates are slightly elevated compared to last week, but haven't experienced any dramatic changes in the past few days.

On Wednesday, the Bureau of Labor Statistics will release its Consumer Price Index report for June. The CPI is a closely-watched gauge of inflation, and June's report will likely have some impact on mortgages.

The Federal Reserve has been raising the federal funds rate to combat inflation, which has helped push mortgage rates up. If inflation continues to grow, the Fed may need to act more aggressively to get prices under control. This could cause mortgage rates to spike. 

Mortgage rates today

Mortgage refinance rates today

Mortgage calculator

Use our free mortgage calculator to see how today's mortgage rates would impact your monthly payments. By plugging in different rates and term lengths, you'll also understand how much you'll pay over the entire length of your mortgage.

Click "More details" for tips on how to save money on your mortgage in the long run.

30-year fixed mortgage rates

The current average 30-year fixed mortgage rate is 5.3%, according to Freddie Mac. This rate is down from the previous week's 5.7%.

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 4.45%, a decrease from the prior week, according to Freddie Mac data.

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 4.19%, an decrease from the previous week.

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.

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. This is in large part due to high levels of inflation and policy response to rising prices.

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.

How do I find personalized mortgage rates?

Some mortgage lenders let you customize your mortgage rate on their websites by entering your down payment amount, zip code, and credit score. The resulting rate isn't set in stone, but it can give you an idea of what you'll pay.

If you're ready to start shopping for homes, you may apply for preapproval with a lender. The lender does a hard credit pull and looks at the details of your finances to lock in a mortgage rate.