Today's Mortgage, Refinance Rates: June 29, 2022 | 30-Year Rates Remain Above 5% - Business Insider

Mortgage rates ticked up a bit today, but are still slightly lower than they were last week.
Early this month, rates had been trending down, reaching a low of 5.09%, according to Freddie Mac. But news that inflation was higher than expected and that the Federal Reserve hiked its rate by 75 basis points helped push mortgage rates back up. Today, they remain elevated but appear to have slowed their climb as the market settles in at these new rate levels.
The rate that the Fed controls is the federal funds rate. Mortgage rates aren’t directly influenced by the federal funds rate, but they often trend up or down in anticipation of Fed policy decisions and how those decisions might impact the broader economy.
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.
Mortgage rates started ticking up from historic lows in the second half of 2021, and may continue to increase throughout 2022. This is in 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.
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 expected to rise even more this year, just at a slower pace than what we’ve seen in the past couple of years.
Even with fewer buyers in the market, those who can afford to buy will still be competing over historically low inventory. When there are more buyers than there are houses available, home prices go up. So while conditions may loosen up a bit due to high rates, we aren’t likely to see a significant drop in prices.
It can be hard to know if a lender is offering you a good rate, which is why it’s so important to get preapproved with multiple mortgage lenders and compare each offer. Apply for preapproval with at least two or three lenders.
Your rate isn’t the only thing that matters. Be sure to compare both what your monthly costs would be as well as your upfront costs, including any lender fees.
Even though mortgage rates are heavily influenced by economic factors that are out of your control, there are some things you can do to help ensure you get a good rate:

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