Today’s Mortgage, Refinance Rates: Sept. 20, 2022


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Mortgage rates were hiked in anticipation of this week’s Federal Reserve meeting.

Another particularly large hike in the federal funds rate is likely to come on Wednesday, with most investors expecting a 75 basis point hike — although there’s also the possibility that the Fed will enact a 100 basis point hike, which is a full percentage point.

With further Fed tightening, mortgage rates could rise again this week, especially if the central bank decides to hike 100 points.

Looking ahead, mortgage rates are unlikely to go down until inflation does. Although prices have slowed somewhat, they are still stubbornly high and it may take a few more hikes from the Fed before we start to see a sustained decline. That means mortgage borrowers aren’t likely to see significantly lower rates until the second half of 2023.

Mortgage rates today

Today’s refinancing rates

type of mortgage average rate today
This information was provided by Zillow. Visit Zillow for more mortgage rates

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

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$1.161
Your estimated monthly payment

  • Pay a 25% you would save yourself a higher down payment $8,916.08 on interest charges
  • interest rate reduction 1% would save you $51,562.03
  • pay surcharge $500 each month would shorten the loan term by 146 Months

If you click More Details, you can also see how much you will pay over the life of your mortgage, including the amount of principal versus interest.

Are mortgage rates rising?

Mortgage rates started rising from historic lows in the second half of 2021 and have risen significantly so far in 2022. More recently, interest rates have been relatively volatile.

In the last 12 months, the consumer price index rose by 8.3%. The Federal Reserve has been working to bring inflation under control and plans to raise the federal funds rate three more times this year after raising it in March, May, June and July.

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While not directly tied to the federal funds rate, mortgage rates are sometimes pushed higher as a result of Fed rate hikes and investor expectations of how those increases will affect the economy.

Inflation remains high but has gradually slowed, which bodes well for mortgage rates and the broader economy.

What do high rates mean for the housing market?

When mortgage rates rise, homebuyers’ purchasing power falls because more of their expected housing budget has to be devoted to paying interest. If interest rates get high enough, buyers can be squeezed out of the market entirely, dampening demand and putting pressure on home price growth.

However, that doesn’t mean house prices will fall – in fact, they’re expected to rise even more this year, just at a slower pace than in recent years.

What is a good mortgage rate?

It can be difficult to know if a lender is offering you a good rate, which is why it’s so important to get pre-approved by multiple mortgage lenders and compare each offer. Apply for pre-approval from at least two or three lenders.

Your fare isn’t the only thing that matters. Be sure to compare both your monthly costs and your upfront costs, including any lender fees.

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Although mortgage rates are heavily influenced by economic factors beyond your control, there are some things you can do to ensure you’re getting a good rate:

  • Consider fixed vs adjustable rates. You may be able to get a lower introductory rate with an adjustable rate mortgage, which can be good if you want to move before the end of the introductory period. But a fixed rate might be better if you’re buying a forever home because you don’t risk your interest rate going up later. Look at the interest rates your lender is offering and weigh your options.
  • Look at your finances. The better your financial situation, the lower your mortgage rate should be. Look for ways to improve your credit score or reduce your debt-to-income ratio, if necessary. Saving up for a higher down payment also helps.
  • Choose the right lender. Each lender charges different mortgage rates. Choosing the right one for your financial situation will help you get a good interest rate.



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