Today’s Mortgage Refinance Rates: December 22, 2022

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Average Fixed 30-year mortgage rates have risen slightly after holding steady below 6% for several days. But the rates are still significantly lower than they have been in recent months.

Rates are expected to decline over the next two years. For those who bought a home when rates were at their peak, refinancing will probably start to look more attractive towards the end of 2023.

Interest in refinancing has plummeted this year, as it typically doesn’t make sense to get a new mortgage when rates are high, as they have been for much of 2022. Compared to a year ago, refinancing requests are down 85%according to the Mortgage Bankers Association.

But as rates come down, refinancing activity will likely start to pick up again as homeowners look to lower their monthly payments with a lower rate.

current mortgage rates

type of mortgage average rate today
This information has been provided by Zillow. see more
mortgage rates on Zillow

Current Refinance Rates

type of mortgage average rate today
This information has been provided by Zillow. see more
mortgage rates on Zillow

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use our free mortgage calculator to see how current mortgage rates would affect your monthly payments. By entering different rates and terms, you’ll also understand how much you’ll pay over the full life of your mortgage.

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Your estimated monthly payment

  • paying a 25% a higher down payment would save you $8,916.08 about interest charges
  • Lower the interest rate in 1% I would save you $51,562.03
  • paying an additional $500 each month would reduce the duration of the loan by 146 months

Click “More Details” for tips on how to save money on your mortgage over the long term.

Fixed 30-year mortgage rates

current average 30 year fixed rate mortgage is 6.31%, according to freddy mac. This is a decrease from the previous week.

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 over the life of the loan.

The long term of 30 years allows you to spread your payments over a long period of time, which means you can keep your monthly payments lower and more manageable. The trade off is that you will have a higher rate than you would with shorter terms or adjustable rates.

15-year fixed mortgage rates

Average 15 year fixed rate mortgage is 5.54%, a decrease from the previous week, according to data from Freddie Mac.

If you want the predictability that comes with a fixed rate but want to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good option 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 will have a higher monthly payment than with a longer term.

Do I have to get a HELOC? Pros and cons

If you’re looking to build equity in your home, a HELOC might be the best way to go at the moment, especially considering how much house prices have increased in the last two years. unlike a refinancing with cash withdrawalyou won’t have to get a whole new mortgage with a new interest rate, and you’ll probably get a better rate than you would with a home equity loan.

But HELOCs don’t always make sense. It is important to consider the pros and cons.

HELOC Advantages

  • You only pay interest on what you borrow
  • They typically have lower rates than alternatives, including home equity loans, personal loans, and credit cards.
  • If you have a lot of capital, you could borrow more than you could get with a personal loan


  • Rates are variable, which means your monthly payments could increase
  • Taking equity out of your home can be risky if the property value goes down or you default on the loan
  • The minimum withdrawal amount can be more than you wish to borrow

When will mortgage rates go down?

Mortgage rates began rising from record lows in the second half of 2021 and have risen more than three percentage points since January 2022. However, rates have recently been on a downward trend and are likely to decline further in 2023 and 2024.

However, rates are not likely to drop dramatically anytime soon. As inflation starts to come down, mortgage rates will also drop a bit. If we experience a recession, rates may drop a bit faster. But average 30-year fixed rates will likely stay somewhere in the 5% to 6% range through 2023.

How do Fed rate hikes affect mortgages?

The Federal Reserve has been increasing the federal funds rate this year to try to curb economic growth and control inflation. Up to this point, inflation has slowed down a bitbut it is still well above the Fed’s 2% rate target.

Mortgage rates are not directly affected by changes in the federal funds rate, but often tend to rise or fall in advance of Federal Reserve policy actions. This is because mortgage rates change based on investor demand for mortgage-backed securities, and this demand is often affected by how investors expect Federal Reserve hikes to affect the economy. usually.

As inflation starts to come down, mortgage rates should too. But the Fed has indicated that it is watching for sustained signs of slowing inflation and that it will not stop raising rates any time soon, although it may start targeting smaller increases at its next meetings.

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