Current Mortgage Interest Rates, January 12, 2022 | Rates Trending Upward

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Looking at today’s mortgage rates a number of notable rates boasted increases. The averages for both 30-year fixed and 15-year fixed mortgages both were driven higher. At the same time, average rates for 5/1 adjustable-rate mortgages (ARM) slid downhill.

The average mortgage rates are as follows:

Mortgage Rate Forecast

Rates have increased slowly over 2021, after they were at a record low at the start of the year. Interest rates haven’t followed a straight path to their current levels because of offsetting factors. 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. Among experts, there is nearly a consensus that mortgage rates will rise; the Federal Reserve actions to address inflation may aid in this process.7

What Do the Current Mortgage Rate Trends Mean for Homebuyers?

In recent weeks we’ve seen rates slowly climb higher. However, mortgage interest rates are still historically low.

New Homebuyers can benefit from low interest rates to help offset rising home prices. There are signs the housing market is starting to cool down, but high home values can overshadow the potential savings from a low mortgage rate. Rate increases may require homebuyers to adjust their budgets to accommodate the increased cost.

Closing Costs & Loan Fees

The industry term for the upfront fees you pay when you get a home loan is closing costs. Everything from the prepaid property taxes to your appraisal fees fall into this category. In general, closing costs are 3% to 6% of your loan amount, so the larger your mortgage the more you’ll pay as a total dollar amount. Keeping track of your closing costs is crucial because a higher closing cost will result in a higher APR.

Current Mortgage Refinance Rates

Refinancing became a bit more expensive today as 30-year fixed and 15-year fixed refinance mortgages saw their mean rates rise. If you’ve been considering a 10-year refinance loan, just know average rates also saw an increase.

Take a look at today’s refinance rates:

Take a look at mortgage rates for different styles of loan.

30-Year Fixed Mortgage Rates

For a 30-year fixed-rate mortgage, the average rate you’ll pay is 3.52%, which is an increase of 18 basis points from seven days ago.

15-Year Mortgage Interest Rates

The median rate for a 15-year fixed mortgage is 2.84%, which is an increase of 22 basis points from seven days 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 save thousands of dollars in interest and pay off your loan much earlier.

5/1 ARM Interest Rates

A 5/1 ARM has an average rate of 2.73%, a slide of 2 basis points compared to last week.

An adjustable-rate mortgage is ideal for individuals 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 Determine Mortgage Rates

We use Bankrate’s daily mortgage rate data for our mortgage rate trends. These overnight rates are based on a specific personal financial profile, which only includes loans for single-family homes with a loan-to-value ratio of 80% or better. Bankrate is part of the same parent company as NextAdvisor.

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 rate3.52%3.34%+0.18
15-year fixed rate2.84%2.62%+0.22
30-year jumbo mortgage rate3.54%3.35%+0.19
30-year mortgage refinance rate3.54%3.35%+0.19

Updated on January 12, 2022.

Pro Tip

Add your interest rate and other estimated figures into our mortgage calculator to see an estimated monthly payment.

Mortgage Rate Frequently Asked Questions (FAQ):

How to Get the Lowest Mortgage Rate

Comparing mortgage offers is one of the best ways to qualify for the lowest mortgage interest rate.

Your mortgage rate depends on a number of factors lenders consider when assessing how the likelihood that you’ll be able to make your mortgage payments for the long term. Your credit score factors into the decision. And your loan-to-value (LTV) ratio matters, so having a more substantial down payment is better for your interest rate.

But banks will evaluate your situation differently. So you can give the same documentation to three different mortgage providers, and get offers with three different mortgage rates and fees that vary just as much.

Should I Lock in My Mortgage Rate Now?

Mortgage rates move up and down on a daily basis, and it’s impossible to time the market. So locking in your interest rate right now is a good idea because overall, rates are exceptionally low.

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.