A handful of major mortgage rates all climbed higher today. Both 30-year and 15-year fixed mortgage rates have increased. For variable rates, the 5/1 Variable Rate Mortgage (ARM) held steady.
Check out today’s rates:
Where are mortgage rates going in 2022?
Over the past few weeks, mortgage rates have been rising rapidly. Strong economic growth and high inflation are part of this recent movement. However, the rise in mortgage rates could be limited by the impact of Omicron or other variants of COVID-19.
In 2022, many industry experts are predicting higher interest rates, and the recent actions of the Federal Reserve only reinforce this trend.
What the mortgage rate forecast means for you
As long as it makes sense for you to buy a home now, current mortgage rate trends shouldn’t derail those plans. However, some buyers may need to adjust their budget due to the recent increase in interest rates.
The good news for home buyers is that the housing market should moderate slightly in 2022. Although the market should cool down a bit, it will remain strong for sellers. In general, experts believe that house prices will continue to rise in 2022, but at a slower pace. And global rates should still remain historically favorable.
Closing costs and loan costs
When taking out a home loan, be sure to pay close attention to closing costs. There are usually 3-6% of the loan amount in closing costs, including origination fees, prepaid interest and property taxes. Accepting a higher interest rate, in exchange for credits from the lender, can help lower your out-of-pocket costs. . This strategy can save you money in the short term, so it’s worth considering if there’s a chance you’ll sell the home or refinance in five to eight years.
Today’s Mortgage Refinance Rates
Refinancing has become a little more expensive today as 30-year and 15-year fixed refinance mortgages have seen their average rates increase. If you’re considering a 10-year refinance loan, just know that average rates have also increased.
The average refinancing rates are as follows:
Check out the mortgage rates that meet your specific needs.
30-Year Fixed-Rate Mortgage Rates
For a 30-year fixed-rate mortgage, the average rate you’ll pay is 4.32%, up 11 basis points from the previous week.
15-year fixed mortgage interest rate
The median rate for a 15-year fixed mortgage is 3.55%, up 5 basis points from seven days ago.
The monthly payment on a 15-year fixed rate mortgage is higher than what you would pay on a 30-year mortgage. However, 15-year loans have significant benefits: you’ll pay thousands less in interest and pay off your loan much sooner.
5/1 ARM Mortgage Rates
A 5/1 ARM has an average rate of 2.92%, the same rate as a week ago.
A variable rate mortgage is ideal for borrowers who will sell or refinance before the rate changes. If not, their interest rates could end up being significantly higher after a rate adjustment.
For the first five years, a 5/1 ARM will typically have a lower interest rate than a 30-year fixed mortgage. Keep in mind that your payment could end up being several hundred dollars higher after a rate adjustment, depending on the terms of your loan.
How we calculate our mortgage rates
We use daily mortgage rate data from Bankrate for our mortgage rate trends. These overnight rates are based on a specific personal financial profile, which only includes loans for primary residences where the borrower has a FICO score of 740+. Bankrate is part of the same parent company as NextAdvisor.
This table shows current average rates based on information provided to Bankrate by lenders nationwide:
Updated March 11, 2022.
Use our mortgage calculator to see how your mortgage payment changes based on things like your mortgage rate, property taxes or down payment.
Frequently Asked Questions (FAQ) About Mortgage Rates:
How to get the best mortgage rate
Comparing home loan offers is a great way to get the lowest rate.
The mortgage rate you’ll qualify for depends on a variety of factors that lenders consider when assessing the risk of giving you a mortgage. Your credit score is factored into the decision. And your loan-to-value (LTV) ratio matters, so having a bigger down payment is better for your interest rate.
But lenders will assess your situation differently. So you can give the same documentation to three different banks and find that none of the mortgage rates and fees you are offered are the same.
When should I lock in my mortgage rate?
Mortgage rates go up and down daily, and it’s impossible to time the market. It is therefore wise to lock in your interest rate now, because overall rates are historically favorable.
A rate lock will only last for a certain amount of time, usually 30 to 60 days. If you have a problem with closing and it looks like your foreclosure rate is expiring, you should contact your lender. They may be able to extend the rate lock, however, you may need to pay a fee for this privilege.