The most important mortgage rates all marched higher today. Both 30-year fixed and 15-year fixed mortgage rates moved higher. At the same time, average rates for 5/1 adjustable-rate mortgages (ARM) remained firm.
The averages for 30-year fixed, 15-year fixed, and 5/1 ARMs are:
Where Are Mortgage Rates Headed in 2022?
In recent weeks, mortgage rates have rapidly increased. Rapid economic recovery has helped push mortgage rates higher, along with high inflation. We may see rates fluctuate if Omicron or other COVID-19 variants adversely affect the economy or public health.
As a result of the Federal Reserve reducing its support of the bond market, rates are expected to rise throughout this year, according to the forecast of many experts.
What the Mortgage Rate Forecast Means for You
Even so, mortgage interest rates are still abnormally low, from the perspective of mortgage rates history.
Low interest rates can help offset rising home prices for first-time homebuyers. However, in many cases rates aren’t low enough to outweigh the high home prices. As rates slowly go up, homebuyers may need to adjust their homebuying budgets to accommodate the extra cost.
What to Know About Loans Fees
The catchall term for the fees you pay to get a mortgage is closing costs. The fees for your appraisal, title insurance, and any lender origination charges are all part of your closing costs. These fees vary depending on the size of your loan, but are usually 3% to 6% of your loan balance. Keeping track of your closing costs is crucial because a higher closing cost will result in a higher APR.
Today’s Mortgage Refinance Rates
Refinancing became a bit more expensive today as 30-year fixed and 15-year fixed refinance mortgages saw their average rates go up. Shorter term, 10-year fixed-rate refinance mortgages also moved up.
The average refinance rates are as follows:
30-Year Mortgage Rates
The average 30-year fixed mortgage interest rate is 4.27%, which is an increase of 2 basis points from last week.
15-Year Mortgage Interest Rates
The median rate for a 15-year fixed mortgage is 3.50%, which is an increase of 4 basis points compared to a week ago.
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. 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 Mortgage Rates
A 5/1 ARM has an average rate of 2.93%, the same rate from the same time last week.
An ARM is ideal for households who will sell or refinance before the rate changes. If that’s not the case, their interest rates could end up being noticeably 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
We use Bankrate’s daily rate data for our mortgage rate trends. These overnight rates are based on a specific borrower 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 mortgage interest rate data listed below and based on the Bankrate mortgage rate survey:
Rates as of March 3, 2022.
Mortgage Rate Frequently Asked Questions (FAQ):
How to Get the Lowest Mortgage Rate
Getting loan offers from two or three lenders is a great way to get the lowest rate.
The mortgage rate you’ll qualify for depends on a number of factors lenders consider when assessing how risky it is to give you a mortgage. Your credit score is a big part of this decision. And your loan-to-value (LTV) ratio is also important, so having a more substantial down payment is better for your interest rate.
But banks will consider your circumstances 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.
Is Now a Good Time to Lock in My Mortgage Rate?
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.
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.