Today’s mortgage & refinance rates, September 2, 2022: Rates rise

Mortgage interest rates rose for all types of loans compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans rose.

Mortgage rates have been on a wild ride as of late, with the 30-year fixed briefly reaching 6 percent as the Federal Reserve cracks down on inflation. The rate chart could continue to look choppy — the Fed’s rate-raising stance against inflation also could lead to a recession, and that could cause mortgage rates to retreat.

The central bank raised rates again at its July 27 meeting. The one-two punch of consecutive rate increases of three-quarters of a point are likely to cool the economy. “The cumulative effect of this sharp rise in rates has cooled the housing market and caused the economy to start slowing, but hasn’t done much to lower inflation,” says Greg McBride, CFA, Bankrate chief financial analyst.

Rates last updated on September 2, 2022.

These rates are marketplace averages based on the assumptions indicated here. Actual rates available across the site may vary. This story has been reviewed by in-house editor Bill McGuire. All rate data accurate as of Friday, September 2nd, 2022 at 7:30 a.m.

>>See historical mortgage interest rate movements

You can save thousands of dollars over the life of your mortgage by getting multiple offers.

“All too often, some homeowners take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming,” says Mark Hamrick, Bankrate senior economic analyst. “But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”

Mortgage rates

Current 30 year mortgage rate climbs, +0.20%

The average rate you’ll pay for a 30-year fixed mortgage is 6.08 percent, an increase of 20 basis points over the last week. A month ago, the average rate on a 30-year fixed mortgage was lower, at 5.41 percent.

At the current average rate, you’ll pay $599.55 per month in principal and interest for every $100,000 you borrow. That’s $15.34 higher compared with last week.

Learn more about 30-year fixed mortgage rates, and compare to a variety of other loan types.

15-year mortgage increases,+0.17%

The average rate for a 15-year fixed mortgage is 5.25 percent, up 17 basis points since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost $547 per $100k borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more quickly.

5/1 adjustable rate mortgage increases, +0.11%

The average rate on a 5/1 adjustable rate mortgage is 4.45 percent, up 11 basis points over the last week.

Adjustable-rate mortgages, or ARMs, are home loans that come with a floating interest rate. In other words, the interest rate can change periodically throughout the life of the loan, unlike fixed-rate mortgages. These loan types are best for people who expect to sell or refinance before the first or second adjustment. Rates could be much higher when the loan first adjusts, and thereafter.

While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.

Monthly payments on a 5/1 ARM at 4.45 percent would cost about $503 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan’s terms.

Current jumbo mortgage rate moves up, +0.23%

The average jumbo mortgage rate is 6.10 percent, up 23 basis points from a week ago. Last month on the 2nd, the average rate on a jumbo mortgage was below that, at 5.38 percent.

At today’s average jumbo rate, you’ll pay a combined $599.55 per month in principal and interest for every $100k you borrow. That’s $15.34 higher compared with last week.

In summary: How mortgage rates have changed

  • 30-year fixed mortgage rate: 6.08%, up from 5.88% last week, +0.20
  • 15-year fixed mortgage rate: 5.25%, up from 5.08% last week, +0.17
  • 5/1 ARM mortgage rate: 4.45%, up from 4.34% last week, +0.11
  • Jumbo mortgage rate: 6.10%, up from 5.87% last week, +0.23

Mortgage refinance rates

30-year fixed-rate refinance increases, +0.21%

The average 30-year fixed-refinance rate is 6.05 percent, up 21 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was lower, at 5.40 percent.

At the current average rate, you’ll pay $599.55 per month in principal and interest for every $100,000 you borrow. That’s up $15.34 from what it would have been last week.

Where mortgage rates are headed

Mortgage rates plunged early in the pandemic and scraped record lows — below 3 percent — at the start of 2021. The days of sub-3 percent mortgage interest on the 30-year fixed are behind us, and rates rose past 5 percent in 2022.

“Low interest rates were the medicine for economic recovery following the financial crisis, but it was a slow recovery so rates never went up very far,” says Greg McBride, CFA, Bankrate chief financial analyst. “The rebound in the economy, and especially inflation, in the late pandemic stages has been very pronounced, and we now have a backdrop of mortgage rates rising at the fastest pace in decades.”

Comparing different mortgage terms

The 30-year fixed-rate mortgage is the most popular loan for homeowners. This mortgage has a number of advantages. Among them:

  • Lower monthly payment: Compared to a shorter term, such as 15 years, the 30-year mortgage offers lower payments spread over time.
  • Stability: With a 30-year mortgage, you lock in a consistent principal and interest payment. Because of the predictability, you can plan your housing expenses for the long term. Remember: Your monthly housing payment can change if your homeowners insurance and property taxes go up or, less likely, down.
  • Buying power: With lower payments, you can qualify for a larger loan amount and a more expensive home.
  • Flexibility: Lower monthly payments can free up some of your monthly budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.
  • Strategic use of debt: Some argue that Americans focus too much on paying down their mortgages rather than adding to their retirement accounts. A 30-year fixed mortgage with a smaller monthly payment can allow you to save more for retirement.

That said, shorter term loans have gained popularity as rates have been historically low. Although they have higher monthly payments compared to 30-year mortgages, there are some big benefits if you can afford the upfront costs. Shorter-term loans can help you achieve:

  • Greatly reduced interest costs: Because you pay off the loan faster, you’ll be able to pay less interest overall.
  • Lower interest rate: On top of less time for that interest to compound, most lenders price shorter-term mortgages with lower rates.
  • Build equity faster: The faster you pay off your mortgage, the faster you’ll own value in your home outright. That’s especially handy if you want to borrow against your property to fund other spending.
  • Debt-free sooner: A shorter-term mortgage means you’ll own your house free and clear sooner than you would with a longer-term loan.

Where rates are headed

To see where Bankrate’s panel of experts expect rates to go from here, check out our Rate Trend Index.

Want to see where rates are right now? Lenders across the nation respond to’s weekday mortgage rates survey to bring you the most current rates available. Here you can see the latest marketplace average rates for a wide variety of purchase loans.

Learn more:

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