Today’s Mortgage and Refinance Rates, November 21, 2022 | Rates Trend Down

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Mortgage rates have seen dramatic changes this year.

The average rate for a 30-year fixed rate has doubled since sitting around 3% this time a year ago. High inflation is the principal cause of the surge in rates, along with the Federal Reserve’s increases to its own interest rate in a bid to quell that inflation.

High mortgage rates have turned the housing market upside down, with a previously hot market cooling significantly. While prices are falling in some areas, that may not make up for the increased costs homebuyers face in higher mortgage rates. Be sure to calculate your monthly payment – and give yourself wiggle room in your budget – to decide if you can actually afford a home.

Here are today’s average interest rates and what they mean for borrowers.

What we’re seeing today is a handful of important mortgage rates have trended lower. Average 30-year fixed mortgage rates declined, while average 15-year fixed mortgage rates stayed the same. We also saw a decline in the average rate of 5/1 adjustable-rate mortgages (ARM).

Mortgage rates currently are:

Mortgage Rate Trends: Why Are Mortgage Rates Changing So Fast?

Mortgage rates have been pushed up primarily by the highest inflation in four decades. The consumer price index showed prices up 7.7% year-over-year in October, compared to 8.2% in September. Inflation has remained higher than expected, but appeared to be slowing down in October.

In response to that high inflation, the Federal Reserve has increased its benchmark short-term interest rate, known as the federal funds rate. In November it raised the federal funds rate by 75 basis points for the fourth time in a row. While the Fed’s changes don’t directly drive increases in mortgage rates, they have some correlation because they both respond to inflation.

“Inflation is absolutely in the driver’s seat, particularly as it pertains to mortgage rates. Until we get some sustained evidence that inflation is beginning to recede, the upward pressure on mortgage rates will remain,” says Odeta Kushi, deputy chief economist at First American Financial Corporation.

Is It a Good Time to Buy a Home With Rates Where They Are?

The big increase in mortgage rates this year has taken a lot of potential homebuyers out of the market. That could present opportunities for you – if you can afford the higher cost of borrowing money.

Homebuyers are facing less competition and prices are down compared to their all-time highs earlier this year, but they’re still high. If you can find a deal you can afford, it can still be a good opportunity. After all, nobody knows what mortgage rates and prices will be like next year, and buying a home is a lifestyle decision, not just a financial one.

“If they find a house that they love, then they should absolutely pull the trigger,” says Joe Allen, a senior mortgage lending officer at Quontic Bank, an online community development financial institution.

What to Know About Loans Fees

Anytime you take out a home loan, your decision should factor in the loan’s closing costs. There are typically 3 to 6% of the loan amount in closing costs, including origination charges, prepaid interest, and property taxes.. It is possible to reduce your out of pocket costs by accepting a higher interest rate in exchange for lender credits. The strategy can save you money in the short-term, so it’s worth considering if you plan to sell or refinance your home within five to eight years.

Looking at Today’s Mortgage Refinance Rates

Checking in on refinance mortgage rates, today the national rate average for a 30-year fixed refinance saw a decrease, while 15-year fixed Refinance rates moved up. Shorter term, 10-year fixed-rate refinance mortgages moved up.

The refinance averages for 30-year, 15-year, and 10-year loans are:

Current Mortgage Rates.

30-Year Fixed Mortgage Rates

The average 30-year fixed mortgage interest rate is 6.85%, which is a decline of 5 basis points from the previous week.

15-Year Fixed Mortgage Interest Rates

The median rate for a 15-year fixed mortgage is 6.20%, which is the same rate from the same time last week.

A 15-year, fixed-rate mortgage’s monthly payment will be much bigger. So finding room in your budget for a 30-year loan’s monthly payment would be easier. However, 15-year loans have some considerable benefits: You’ll pay thousands less in interest and pay off your loan much earlier.

5/1 Adjustable-Rate Mortgage Rates

A 5/1 ARM has an average rate of 5.49%, a downtick of 13 basis points from seven days ago.

An ARM is ideal for individuals who will sell or refinance 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 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 home loans where the borrower has a 740+ credit score, a LTV of 80% or lower, and the home is a primary residence.

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 country:

Average mortgage interest rates
ProductRateLast weekChange
30-year fixed6.85%6.90%-0.05
15-year fixed6.20%6.20%N/C
30-year jumbo mortgage rate6.84%6.83%+0.01
30-year mortgage refinance rate6.85%6.87%-0.02

Rates as of November 21, 2022.

Pro Tip

Plug and play your desired mortgage or refinance rate and other estimated figures into our mortgage calculator to get a good idea of what your monthly payment will be.

Mortgage Rate Frequently Asked Questions (FAQ):

How Do I Get the Best Mortgage Rate?

Comparing mortgage offers is one of the best ways to secure the lowest mortgage rate.

The mortgage rate you’ll qualify for depends on a variety of factors lenders consider when assessing how risky it is to loan you money for a home purchase. Your credit score impacts your mortgage rate. And even the value of the property compared to your mortgage balance is important. So putting more money into your down payment can reduce your mortgage rate.

But banks will consider your circumstances differently. So you can give the same documentation to three different banks, 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 historically favorable.

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 something happens where you need to extend your rate lock, ask about fees as many lenders charge a fee for extending a rate lock.