Today's mortgage and refinance rates: June 21, 2022 | Demand drops as rates rise

Mortgage rates moderated slightly toward the end of last week, but they're still higher than they have been in recent weeks. News of increasing inflation and larger than expected Federal Reserve

rate hikes created some volatility

in the markets in the past couple of weeks, which caused mortgage rates to rise. 

Rates are up dramatically compared to this time last year. Rising rates have cut into affordability for homebuyers, which has led to a drop in demand for homes. 

Today's mortgage rates

Today's refinance rates

Mortgage calculator

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.

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.

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.

What do high rates mean for the housing market?

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.

What is a good mortgage rate?

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

The best mortgage lenders of June 2022The best lenders should be affordable and offer a variety of mortgage types, including conforming, jumbo, FHA, USDA, and VA loans. Explore our picks. Read more Read MoreA looong arrow, pointing right

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:

• 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 plan to move before the intro period ends. But a fixed rate could be better if you're buying a forever home because you won't risk your rate going up later. Look at the rates your lender offers and weigh your options.
• Look at your finances. The stronger your financial situation, the lower your mortgage rate should be. Look for ways to boost your credit score or lower your debt-to-income ratio, if necessary. Saving for a higher down payment also helps.
• Choose the right lender. Each lender charges different mortgage rates. Picking the right one for your financial situation will help you land a good rate.