Current Mortgage Rates, January 11, 2022 | Rates Moved Upward

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A handful of important mortgage rates all marched higher today. Both 30-year fixed and 15-year fixed mortgage rates climbed up. We also saw no change in the average rate of 5/1 adjustable-rate mortgages (ARM).

The average mortgage rates are as follows:

Mortgage Rate Forecast: Where Are Mortgage Rates Headed in 2022?

We began the year with record-low mortgage rates, and rates have since risen. However, this rate growth has come in fits and spurts due to competing factors pushing and pulling on rates. Inflation and a growing economy are two reasons why rates have risen. Additionally, the threat of Omicron and other variants has muted the rise in mortgage rates. It’s generally expected that rates will rise in the future, and the decision by the Federal Reserve to reduce its bond purchases will contribute to that.7

What the Mortgage Rate Forecast Means for You

Although most experts predict mortgage rates will continue to rise, the growth will likely be modest. That means homebuyers can expect to see only a reasonable uptick in their loan’s interest rate. As long as it makes sense for you to buy a home right now, the current mortgage rate trends shouldn’t derail those plans.

The 2022 housing market is forecast to be just a bit more reasonable. Although the market is expected to cold down a bit, it will remain strong for sellers. Overall, home prices are forecast to rise, but at a much slower rate than what we saw in 2022. And the expectation is that rates will continue to be historically low.

Closing Costs & Loan Fees

When you take out a home loan, be sure to pay close attention to the closing costs. Closing costs can be anywhere between 3-6% of the loan amount, and include fees such as loan origination charges, prepaid interest and property taxes. Choosing a higher interest rate in exchange for lender credit can reduce your upfront costs. You can save money in the short term by using this strategy, so don’t overlook it if you plan on selling your house or refinancing in five to eight years.

Looking at Today’s Mortgage Refinance Rates

Refinancing became a bit more expensive today as 30-year fixed and 15-year fixed refinance mortgages saw their mean rates climb. Shorter term, 10-year fixed-rate refinance mortgages also inched up.

Take a look at today’s refinance rates:

Current Mortgage Rates.

30-Year Fixed Mortgage Interest Rates

The average 30-year fixed mortgage interest rate is 3.49%, which is a growth of 19 basis points from last week.

15-Year Fixed Mortgage Rates

The median rate for a 15-year fixed mortgage is 2.76%, which is an increase of 19 basis points compared to a week ago.

A 15-year, fixed-rate mortgage’s monthly payment is larger than what you would pay with a 30-year mortgage. However, 15-year loans have some considerable benefits: You’ll pay thousands less in interest and pay off your loan much earlier.

5/1 ARM Interest Rates

A 5/1 ARM has an average rate of 2.74%, the same rate compared to last week.

An ARM is ideal for households who will refinance or sell before the rate changes. If that’s not the case, their interest rates could end up being markedly higher after a rate adjusts.

For the first five years, a 5/1 ARM will typically have a lower interest rate compared to a 30-year fixed mortgage. Keep in mind that your payment could end up being hundreds of dollars higher after a rate adjustment, depending on the terms of your loan.

How We Calculate Our Mortgage Interest Rates

To see where mortgage rates are headed, we rely on information collected by Bankrate, which is owned by the same parent company as NextAdvisor. The daily rates survey focuses on mortgages where the borrower has a FICO score of 740 or more, 20% equity or more, and lives in the home.

The average rates listed below and based on the Bankrate mortgage rate survey:

Current average mortgage interest rates
Loan typeInterest rateA week agoChange
30-year fixed rate3.49%3.30%+0.19
15-year fixed rate2.76%2.57%+0.19
30-year jumbo mortgage rate3.51%3.31%+0.20
30-year mortgage refinance rate3.50%3.30%+0.20

Updated on January 11, 2022.

Pro Tip

Add your mortgage or refinance rate and the rest of your loan details into NextAdvisor’s mortgage calculator to get a good idea of what your monthly payment will be.

Mortgage Rate Frequently Asked Questions (FAQ):

How to Qualify for the Lowest Mortgage Rate

Getting loan offers from a few lenders is one of the best ways to get the lowest mortgage rate.

The mortgage rate you get depends on a number of factors lenders consider when assessing how likely you are to repay your mortgage. Your credit score is a big part of this decision. And even the value of the property compared to your mortgage balance is important. So increasing your down payment can reduce your interest rate.

But lenders will consider your circumstances differently. So you can give the same documentation to three different mortgage providers, and receive mortgage offers with vastly different rates and fees.

Should I Lock in My Mortgage Rate Now?

It’s impossible to know what direction mortgage rates will go from day to day. That’s why a mortgage rate lock is such a useful tool because it protects you if rates go up. And with interest rates so low right now, you should lock in your rate as soon as you can.

When you lock in your rate, ask your lender how long the lock is valid for. A rate lock can be good for anywhere from 30 to 60 days, which typically will give you enough time to close before the lock expires. If you want to extend the rate lock, ask about fees as many lenders charge a fee for extending a rate lock.