Mortgage rates today were mixed. Average 15-year fixed mortgage rates decreased, while average 30-year fixed mortgage rates saw growth. For variable rates, the 5/1 adjustable-rate mortgage remained steady. Although mortgage rates fluctuate and have been higher in the last several weeks, it might be a good time for prospective homebuyers to secure a fixed rate. Before you purchase a home, remember to consider your personal needs and financial situation, and compare offers from various lenders to find the right one for you.
30-year fixed-rate mortgages
The average interest rate for a standard 30-year fixed mortgage is 4.25%, which is a growth of 2 basis points as seven days ago. (A basis point is equivalent to 0.01%.) The most common loan term is a 30-year fixed mortgage. A 30-year fixed rate mortgage will usually have a lower monthly payment than a 15-year one -- but usually 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.
15-year fixed-rate mortgages
The average rate for a 15-year, fixed mortgage is 3.46%, which is a decrease of 8 basis points from the same time last week. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and interest rate will have a higher monthly payment. However, if 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.
5/1 adjustable-rate mortgages
A 5/1 adjustable-rate mortgage has an average rate of 4.25%, the same rate compared to a week ago. You'll usually get a lower interest rate (compared to a 30-year fixed mortgage) with a 5/1 adjustable-rate mortgage in the first five years of the mortgage. But since the rate shifts with the market rate, you might end up paying more after that time, as described in the terms of your loan. For borrowers who plan to sell or refinance their house before the rate changes, an adjustable-rate mortgage could be a good option. Otherwise, shifts in the market means your interest rate could be significantly higher once the rate adjusts.
Mortgage rate trends
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 rate changes over time. This table summarizes the average rates offered by lenders across the US:
Current average mortgage interest rates
|Loan type||Interest rate||A week ago||Change|
|30-year fixed rate||4.25%||4.23%||+0.02|
|15-year fixed rate||3.46%||3.54%||-0.08|
|30-year jumbo mortgage rate||2.93%||2.89%||+0.04|
|30-year mortgage refinance rate ||4.20%||4.24%||-0.04|
Updated on Feb. 24, 2022.
How to shop for the best mortgage rate
You can get a personalized mortgage rate by connecting with your local mortgage broker or using an online calculator. Make sure to take into account your current financial situation and your goals when searching for a mortgage. A range of factors -- including your down payment, credit score, loan-to-value ratio and debt-to-income ratio -- will all affect your mortgage interest rate. Generally, you want a good credit score, a larger down payment, a lower DTI and a lower LTV to get a lower interest rate. Beyond the interest rate, other factors including closing costs, fees, discount points and taxes might also affect the cost of your house. You should comparison shop with multiple lenders -- such as credit unions and online lenders in addition to local and national banks -- in order to get a mortgage that's right for you.
What is a good loan term?
When picking a mortgage, it's important to consider the loan term, or payment schedule. The loan 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. For fixed-rate mortgages, interest rates are stable for the life of the loan. Unlike a fixed-rate mortgage, the interest rates for an adjustable-rate mortgage are only stable for a certain amount of time (usually five, seven or 10 years). After that, the rate changes annually based on the market rate.
When deciding between a fixed-rate and adjustable-rate mortgage, you should take into consideration the length of time you plan to stay in your house. Fixed-rate mortgages might be a better fit for those who plan on living in a home for a while. Fixed-rate mortgages offer greater stability over time in comparison to adjustable-rate mortgages, but adjustable-rate mortgages might offer lower interest rates upfront. If you don't have plans to keep your new home for more than three to 10 years, however, an adjustable-rate mortgage could give you a better deal. The best loan term all is entirely dependent on your situation and goals, so make sure to consider what's important to you when choosing a mortgage.