Current mortgage and refinance rates for February 16, 2022 – Rates rise

Average mortgage rates rose 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 last updated on February 16, 2022.

These rates are averages based on the assumptions indicated here. Actual rates available within the site may vary. This story has been reviewed by Bill McGuire. All rate data accurate as of Wednesday, February 16th, 2022 at 7:30 a.m.

>>See historical mortgage interest rate movements

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 interest rates

30-year fixed-rate mortgage rises, +0.27%

The average rate for the benchmark 30-year fixed mortgage is 4.23 percent, an increase of 27 basis points from a week ago. A month ago, the average rate on a 30-year fixed mortgage was lower, at 3.58 percent.

At the current average rate, you’ll pay principal and interest of $489.02 for every $100,000 you borrow. That’s $20.78 higher compared with last week.

Use our mortgage calculator to estimate your monthly payments and see how much you’ll save by adding extra payments. This calculator will also help you calculate how much interest you’ll fork up over the life of the loan.

15-year fixed mortgage rate rises,+0.22%

The average rate for the benchmark 15-year fixed mortgage is 3.54 percent, up 22 basis points over the last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost $448 per $100,000 borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, 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 faster.

5/1 adjustable rate mortgage increases, +0.02%

The average rate on a 5/1 ARM is 2.87 percent, adding 2 basis points since the same time last week.

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

Monthly payments on a 5/1 ARM at 2.87 percent would cost about $409 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan’s terms.

Jumbo mortgage rate moves upward, +0.28%

The average jumbo mortgage rate today is 4.25 percent, an increase of 28 basis points over the last week. Last month on the 16th, the average rate on a jumbo mortgage was lesser, at 3.59 percent.

At today’s average jumbo rate, you’ll pay a combined $489.02 per month in principal and interest for every $100k you borrow. That’s up $13.91 from what it would have been last week.

Recap: How mortgage interest rates have moved

  • 30-year fixed mortgage rate: 4.23%, up from 3.96% last week, +0.27
  • 15-year fixed mortgage rate: 3.54%, up from 3.32% last week, +0.22
  • 5/1 ARM mortgage rate: 2.87%, up from 2.85% last week, +0.02
  • Jumbo mortgage rate: 4.25%, up from 3.97% last week, +0.28

Mortgage refinance rates

30-year fixed-rate refinance goes up, +0.22%

The average 30-year fixed-refinance rate is 4.23 percent, up 22 basis points over the last seven days. A month ago, the average rate on a 30-year fixed refinance was lower, at 3.57 percent.

At the current average rate, you’ll pay $489.02 per month in principal and interest for every $100,000 you borrow. That’s an additional $13.91 per $100,000 compared with last week.

Rate trends: Where are mortgage rates headed?

Mortgage rates plunged early in the pandemic and scraped record lows — below 3 percent — at the start of 2021. The new year, however, has been characterized by rising rates. The days of sub-3 percent mortgage interest on the 30-year fixed are behind us, and many experts think the average rate on this loan will be 3.5 to 4 percent by the end of 2022. That’s still great by historical standards though. The ultra-low rates of 2020 and 2021 were an anomaly, but even 4 percent is a deal in the scheme of things.

“Mortgage rates continue to surge, as they have since the beginning of the year, as the outlook takes shape for Fed rate hikes that are sooner and faster than previously expected,” McBride says. “Mortgage rates are still well below 4 percent but in an environment of already sky-high home prices, more would-be homebuyers are priced out with each move higher in mortgage rates.”

Comparing mortgage terms

The 30-year fixed-rate mortgage is the most popular option for homeowners, and this type of loan has a number of advantages, including:

  • Lower monthly payment: Compared to a shorter term, such as 15 years, the 30-year mortgage offers lower payments spread over time.
  • Stability: With a 30-year mortgage, you lock in a consistent principal and interest payment. Because of the predictability, you can plan your housing expenses for the long term. Remember: Your monthly housing payment can change if your homeowners insurance and property taxes go up or, less likely, down.
  • Buying power: With lower payments, you can qualify for a larger loan amount and a more expensive home.
  • Flexibility: Lower monthly payments can free up some of your monthly budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.
  • Strategic use of debt: Some argue that Americans focus too much on paying down their mortgages rather than adding to their retirement accounts. A 30-year fixed mortgage with a smaller monthly payment can allow you to save more for retirement.

That said, shorter term loans have gained popularity as rates have been historically low. Although they have higher monthly payments compared to 30-year mortgages, there are some big benefits if you can afford the upfront costs. Shorter-term loans can help you achieve:

  • Greatly reduced interest costs: Because you pay off the loan faster, you’ll be able to pay less interest overall.
  • Lower interest rate: On top of less time for that interest to compound, most lenders price shorter-term mortgages with lower rates.
  • Build equity faster: The faster you pay off your mortgage, the faster you’ll own value in your home outright. That’s especially handy if you want to borrow against your property to fund other spending.
  • Debt-free sooner: A shorter-term mortgage means you’ll own your house free and clear sooner than you would with a longer-term loan.

How to get the best rate

Mortgage rates can vary largely based on overall market forces, the size of the loan, your location, your financial situation and how eager mortgage lenders are to get your business. Remember that the rates we post are averages–some people will be quoted higher or lower or that exact rate, and the rate may change daily even at the same lender.

It’s crucial when you’re searching for a mortgage to shop around and compare and contrast all the terms of your offers, not just the interest rate you’re being quoted. Your best rate and terms may be from an online lender, the bank down the street or perhaps through a mortgage broker. You won’t know unless you shop multiple lenders through multiple channels.

Bankrate is a great place to start, because you can take advantage of our mortgage rate comparison tool and remain up to date on current rates. If you’re not happy with the results you see between these pages, you should check with the institution where you do your banking, and other small lenders like credit unions or local banks.

Learn more:

Today’s featured lenders, February 16, 2022

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