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Mortgage Rates Are Projected to Climb. Here's What to Do.

July 6, 2022


Min Read
Man running up stairs. Mortgage Rates Projected to Climb. Here's What to Do




If you've been watching mortgage rates recently, we have news for you.

Rates are climbing

Across the board, many major mortgage rates increased today. The average interest rate for both 15 year fixed and 30 year fixed mortgages increased by several points.

For over 2 months, mortgage rates have stayed below 3% and it was predicted that that trend would continue into September.

Today, however, the average rate for a 30-year fixed-rate loan is 3.263%, up for the second day in a row. The rate for a 15-year loan, however, jumped down to 2.362%

Rates for other loan types changed as well. The biggest change occurring with the 10/1 adjustable-rate mortgage, which increased by .712%

Why are rates climbing?

Take what John Lanz, VP of Training and Development at Lower, says about why we typically see rates rise and fall:

John Lanz

"To oversimplify: rates rise when times are good and fall when times are bad. The federal government will use its tools to keep rates low when it feels the economy needs a boost, and raise interest rates when prices are rising quickly. 

Rates are expected to rise in the short-term and medium-term because the economy is showing signs of recovery, and new demand is causing increases to consumer prices. Rates are rising today as the market believes the federal government will raise its benchmark rates sooner than previously announced."

For example, in March we saw rates climb significantly as COVID-19 vaccines were introduced and many were optimistic that the pandemic would soon be under control. However, mortgage rates dropped from April to July with an increase in Covid cases, not unlike we're seeing today.

Although rates are slightly higher today, borrowers can still find and qualify for very attractive rates for either a home purchase or mortgage refinance.

Here's a breakdown of the latest average rates for varying mortgage types.

The following rates represent what we’re seeing in the industry. Compare those to the Lower rate table below.

  • Today's rate for a 30-year fixed rate mortgage — 3.263%

Current Industry Average Mortgage Refinance Rates

  • The refinance rate on a 30-year fixed-rate refinance is 3.409%. 

Now let's take a moment to compare those rates with the rate you could get at Lower.

New Home Loans and Refinance Rates at Lower

  • Today's rate for a 30-year fixed-rate mortgage — 2.750%
  • The refinance rate on a 30-year fixed-rate refinance is 2.625%

How to Lock A Low Mortgage Rate

With Lower’s Rate Lock program, if interest rates happen to go up during the period when your rate is locked, you get to keep your lower rate, giving you peace of mind and keeping your payments the same. At Lower, you can lock in your rate up to 60 days for both your home purchase mortgage or a refinance. Lower also forgoes any fees for locking in your rate and all you need to do is provide the documents needed for underwriting. 

Other mortgage lenders only allow you to lock in your rate for 30 days for a mortgage or 45 days for a refinance. Many lenders also charge rate lock fees—on top of which, if your loan doesn’t close within the lock period, there are additional fees for extending it, even if it’s due to third-party complications, like getting an appraisal.

Nobody wants to get caught up in that.

It's still an excellent time to lock into a fixed mortgage rate but, as always, be sure to think about your personal goals in financial circumstances before buying or refinancing a home.

As rates may continue to increase throughout September, now is the right time to lock in current rates before they climb even higher.

Compare the best mortgage rates at and speak with an expert loan advisor today to see which loan option would be the best for you.

*This offer is not guaranteed if you do not continue to meet Lower’s criteria and other factors bearing on your credit worthiness (including acceptable property collateral, income and employment history). Not all applicants will qualify for the rate and monthly payment shown. Monthly payments do not include property taxes, property insurance, and homeowners association dues. Your exact loan's interest rate and payments will depend upon the term of your loan, your credit history, and other qualifying factors. To qualify for a mortgage, borrowers must be U.S. citizens or permanent residents, and meet Lower’s underwriting and Investor requirements. Loans valid for the refinance or purchase of an owner-occupied residence. Loan amounts must be at or under conforming loan limits within your state and county. Rate subject to change depending time of rate lock. Call 844-645-6937 for exact details and qualifying information.
*Offer not valid for subordinate simultaneous closings and only applicable for first lien mortgage loans. Offer exclusively waives Lower retained fees, to include: origination, underwriting, processing, or administrative fees. Offer not applicable for discount points, or any third-party settlement service fees, such as Title, Settlement, Appraisal, Credit report, Commissions, or other similar settlement provider fees. Customer must have closed previous first-lien refinance transaction on or after December 1, 2018 with Lower and at least six (6) months prior to any subsequent applications. All applications are subject to underwriting and credit approval. Other restrictions may apply. Call for complete details.  Offer not valid at other locations other than 8621 Robert Fulton Drive Suite 150 Columbia, MD 21046 and NMLS Branch ID 1668557 | 8131 Smith’s Mill Road, New Albany, OH
*Lower® is a trademark of Lower Holding Company. Sample rate as of 2021-09-07. Interest rate based on a $200001 loan amount with a 30-year fixed rate and 2.800 APR at 75% loan-to-value (LTV) is a monthly payment of $803.3 with 1.75 discount points.
*Quicken® is a trademark of Quicken Loans Inc., a subsidiary of Rock Holdings Inc. Sample rate as of 2021-09-07. Interest rate based on a $200000 loan amount with a 30-year fixed rate and 3.353 APR at 75% loan-to-value (LTV) is a monthly payment of $856.76 with 1.75 discount points.
*Wells Fargo® is a trademark of Wells Fargo & Company. Sample rate as of 2021-09-07. Interest rate based on a $200000 loan amount with a 30-year fixed rate and 3.200 APR at 75% loan-to-value (LTV) is a monthly payment of $857 with 0 discount points.
*The national average mortgage rate is based on Bankrate’s latest survey of the nation’s largest mortgage lenders, the benchmark 30-year fixed mortgage rate is 3.030 percent with an APR of 3.250 percent. Sample rates as of 2021-09-08.

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