Compare today’s mortgage and refinance rates, January 21st, 2022 – Rates rise

Mortgage rates moved higher for all types of loans compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans increased.

Rates accurate as of January 21, 2022.

These rates are marketplace averages based on the assumptions indicated here. Actual rates available on-site may vary. This story has been reviewed by Bill McGuire. All rate data accurate as of Friday, January 21st, 2022 at 7:30am.

>>View historical mortgage interest rate trends

You can save thousands of dollars over the life of your mortgage by getting multiple offers. “It is so important to shop around,” says Greg McBride, CFA, Bankrate chief financial analyst. “Not everyone offers the same price, and some lenders may have motivation to be very competitive on price.”

Mortgage rates for home purchase

Current 30 year mortgage rate goes up, +0.16%

The average 30-year fixed-mortgage rate is 3.67 percent, an increase of 16 basis points over the last seven days. Last month on the 21st, the average rate on a 30-year fixed mortgage was lower, at 3.19 percent.

At the current average rate, you’ll pay $454.65 per month in principal and interest for every $100,000 you borrow. That’s an additional $6.72 per $100,000 compared to last week.

When to consider a 30-year fixed mortgage

Choosing the right home loan is an important step in the homebuying process, and you have a lot of options. You need to take several factors into consideration, including your credit score, income, down payment amount, budget, and financial goals.

15-year mortgage rate rises,+0.19%

The average rate for a 15-year fixed mortgage is 3.02 percent, up 19 basis points from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $422 per $100,000 borrowed. That may put more pressure on your monthly budget than a 30-year mortgage would, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more quickly.

5/1 adjustable rate mortgage moves up, +0.03%

The average rate on a 5/1 adjustable rate mortgageis 2.78 percent, up 3 basis points from a week ago.

Adjustable-rate mortgages, or ARMs, are mortgage terms that come with a floating interest rate. In other words, the interest rate can change intermittently throughout the life of the loan, unlike fixed-rate mortgages. These types of loans are best for people who expect to refinance or sell before the first or second adjustment. Rates could be much higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 2.78 percent would cost about $409 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.

Jumbo mortgage interest rate moves upward, +0.17%

The average rate for a jumbo mortgage is 3.68 percent, an increase of 17 basis points over the last week. Last month on the 21st, the average rate was below that, at 3.18 percent.

At today’s average jumbo rate, you’ll pay $454.65 per month in principal and interest for every $100k you borrow. That’s an increase of $6.72 over what you would have paid last week.

Summary: How interest rates have changed this week

  • 30-year fixed mortgage rate: 3.67%, up from 3.51% last week, +0.16
  • 15-year fixed mortgage rate: 3.02%, up from 2.83% last week, +0.19
  • 5/1 ARM mortgage rate: 2.78%, up from 2.75% last week, +0.03
  • Jumbo mortgage rate: 3.68%, up from 3.51% last week, +0.17

Mortgage refinance rates

Current 30 year mortgage refinance rate increases, +0.14%

The average 30-year fixed-refinance rate is 3.65 percent, up 14 basis points over the last seven days. A month ago, the average rate on a 30-year fixed refinance was lower, at 3.16 percent.

At the current average rate, you’ll pay $454.65 per month in principal and interest for every $100,000 you borrow. That’s an extra $6.72 compared with last week.

Are mortgage rates rising or falling?

Mortgage rates have fallen to record lows in recent months. Where they’ll go from here is nearly impossible to predict. The direction of rates depends largely on the direction of the economy. It also depends on how well the coronavirus pandemic is contained. Most experts predict that if the economy continues to bounce back and drugmakers develop a successful vaccine, mortgage rates will increase. On the other hand, if the economy struggles because of coronavirus-related setbacks, mortgage rates will remain at record lows or fall even further.

Keep reading:

Featured lenders, January 21, 2022

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