The most principal mortgage rates all moved up today. Both 30-year fixed and 15-year fixed mortgage rates climbed up. At the same time, average rates for 5/1 adjustable-rate mortgages (ARM) also were boosted.
Mortgage rates currently are:
- Today’s average 30-year fixed mortgage rate is 3.51%
- 20-year fixed mortgage rates are averaging 3.41%
- 15-year fixed mortgage rates are averaging 2.83%
- The average 10-year fixed-rate mortgage currently sits at 2.80%
- 5/1 ARM rate: 2.75%
Mortgage Rate Forecast
Mortgage rates have slowly risen during 2021, after starting the year at an all-time low. In spite of this, rate growth has been patchy due to competing factors causing and restraining its growth. Rates have risen, in part, as a result of a healthy economy and rising inflation. At the same time, Omicron and the threat of 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 These Mortgage Rate Forecast Mean for Homebuyers
Homebuyers will still be able to access historically low mortgage interest rates despite a steady increase in rates. Most homebuyers may only see a marginal uptick in their home loan’s interest rate. With so many factors that go into buying a home, mortgage rates shouldn’t have a significant impact for most homebuyers.
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. In general, experts believe home prices will continue to go up in 2022, but at a slower pace. And the expectation is that rates will continue to be historically low.
Pay Attention to Loan Fees
The umbrella term for what you pay to take out a mortgage loan is closing costs. Everything from the prepaid property taxes to your appraisal fees fall into this category. Certain closing costs vary by loan size, but overall you can expert to pay 3% to 6% of the total loan balance.. Your closing costs play a crucial role in determining your annual percentage rate (APR). In other words, the higher your closing costs, the higher your APR will be..
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. If you’ve been considering a 10-year refinance loan, just know average rates also saw growth.
The refinance averages for 30-year, 15-year, and 10-year loans are:
- The average 30-year fixed-rate refinance currently sits at: 3.51%
- 20-year fixed refinance rate: 3.45%
- 15-year fixed refinance rate: 2.81%
- 10-year fixed-rate refinance: 2.83%
30-Year Mortgage Rates
The average 30-year fixed mortgage interest rate is 3.51%, which is a growth of 8 basis points from seven days ago.
15-Year Fixed Mortgage Interest Rates
The median rate for a 15-year fixed mortgage is 2.83%, which is an increase of 14 basis points from the same time last week.
A 15-year, fixed-rate mortgage’s monthly payment is larger than what you would pay with a 30-year mortgage. But, 15-year loans have some considerable benefits: You’ll pay thousands less in interest and pay off your loan much faster.
5/1 ARM Interest Rates
A 5/1 ARM has an average rate of 2.75%, which is an increase of 2 basis points compared to last week.
An ARM is ideal for borrowers 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 Our Mortgage Interest Rates Are Calculated
To get an idea of where mortgage rate may move, 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 high credit score (740+), 20% equity or more, and lives in the home.
The table below compares today’s average rates to what they were a week ago, and is based on information provided to Bankrate by lenders from across the nation:
|30-year jumbo mortgage rate||3.51%||3.45%||+0.06|
|30-year mortgage refinance rate||3.51%||3.44%||+0.07|
Rates as of January 14, 2022.
Mortgage Rate Frequently Asked Questions (FAQ):
How to Get the Lowest Mortgage Rate
There are two key factors to getting the lowest interest rate: Loan-to-value ratio (LTV), and your credit score.
To get the best rate, you’ll need a credit score somewhere between 700-800. Having a credit score above 800 is nice, but will likely have no major impact on your rate.
Lenders provide the largest mortgage rate discounts to borrowers that are seen as less risky. One surefire way to signal you’re more likely to make your monthly payments is to have a bigger down payment. A down payment of 20% or more will save you money in two ways: with a more favorable mortgage rate, and you’ll be able to avoid paying for private mortgage insurance (PMI).
Is Now a Good Time to Lock in My Mortgage Rate?
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.
A rate lock will only last for a set amount of time, typically 30-60 days. If you hit a snag during closing and it looks like your rate lock will expire you should contact your lender. It may be able to extend the rate lock, however, you might have to pay a fee for that privilege.