Today, some mortgage rates inched up and others went down. If you haven't locked in a rate yet, see how your payments might be affected.
Mortgage rates today were varied, but an important rate crept up: average 30-year fixed mortgage rates. Meanwhile, average rates for 5/1 adjustable-rate mortgages and average 15-year fixed mortgage rates receded. Mortgage interest rates are never set in stone, but it may be a good time for prospective homebuyers to lock in a fixed rate. Before you purchase a house, remember to take into account your personal needs and financial situation, and speak with multiple lenders to find the best one for you.
The 30-year fixed-mortgage rate average is 4.22%, which is an increase of 2 basis points from one week ago. (A basis point is equivalent to 0.01%.) The most frequently used loan term is a 30-year fixed mortgage. A 30-year fixed rate mortgage will usually have a smaller monthly payment than a 15-year one -- but often a higher interest rate. Although you'll pay more interest over time -- you're paying off your loan over a longer timeframe -- if you're looking for a lower monthly payment, a 30-year fixed mortgage may be a good option.
The average rate for a 15-year, fixed mortgage is 3.44%, which is a decrease of 7 basis points compared to a week ago. You'll definitely have a higher monthly payment with a 15-year fixed mortgage compared to a 30-year fixed mortgage, even if the interest rate and loan amount are the same. However, as long as you're able to afford the monthly payments, there are several benefits to a 15-year loan. These include typically being able to get a lower interest rate, paying off your mortgage sooner, and paying less total interest in the long run.
A 5/1 adjustable-rate mortgage has an average rate of 4.22%, a decrease of 2 basis points from seven days ago. With an adjustable-rate mortgage mortgage, you'll usually get a lower interest rate than a 30-year fixed mortgage for the first five years. However, you might end up paying more after that time, depending on the terms of your loan and how the rate changes with the market rate. If you plan to sell or refinance your house before the rate changes, an ARM may make sense for you. Otherwise, shifts in the market means your interest rate may be a good deal higher once the rate adjusts.
While 2022 kicked off with low mortgage rates, they have seen an uptick recently. There are two major factors at play here: increasing inflation rates and a growing economy. That said, rates can always rise and fall for a variety of reasons. The spread of omicron, for instance, kept rates relatively low throughout December and the start of the new year. Overall, rates are expected to go up in 2022, particularly with the Federal Reserve's decision to increase interest rates.
We use rates collected by Bankrate, which is owned by the same parent company as CNET, to track daily mortgage rate trends. This table summarizes the average rates offered by lenders nationwide:
| Loan type | Interest rate | A week ago | Change |
|---|---|---|---|
| 30-year fixed rate | 4.22% | 4.20% | +0.02 |
| 15-year fixed rate | 3.44% | 3.51% | -0.07 |
| 30-year jumbo mortgage rate | 2.93% | 2.87% | +0.06 |
| 30-year mortgage refinance rate | 4.17% | 4.22% | -0.05 |
Updated on Feb. 22, 2022.
You can get a personalized mortgage rate by reaching out to your local mortgage broker or using an online calculator. Make sure to take into account your current financial situation and your goals when looking for a mortgage. Things that affect what the interest rate you might get on your mortgage include: your credit score, down payment, loan-to-value ratio and your debt-to-income ratio. Having a good credit score, a larger down payment, a low DTI, a low LTV, or any combination of those factors can help you get a lower interest rate. Aside from the mortgage interest rate, other factors including closing costs, fees, discount points and taxes might also affect the cost of your house. Make sure you talk to several different lenders -- for example, local and national banks, credit unions and online lenders -- and comparison shop to find the best mortgage loan for you.
When picking a mortgage, it's important to consider the loan term, or payment schedule. The mortgage terms most commonly offered are 15 years and 30 years, although you can also find 10-, 20- and 40-year mortgages. Mortgages are further divided into fixed-rate and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are stable for the duration of the loan. For adjustable-rate mortgages, interest rates are fixed for a certain number of years (commonly five, seven or 10 years), then the rate fluctuates annually based on the current interest rate in the market.
One thing to take into consideration when choosing between a fixed-rate and adjustable-rate mortgage is how long you plan on staying in your home. For people who plan on staying long-term in a new house, fixed-rate mortgages may be the better option. While adjustable-rate mortgages can sometimes offer lower interest rates upfront, fixed-rate mortgages are more stable over time. However you may get a better deal with an adjustable-rate mortgage if you only plan to keep your home for a couple years. The best loan term all depends on your situation and goals, so make sure to take into consideration what's important to you when choosing a mortgage.