Mortgage and refinance rates today, January 6th, 2022 – Majority of rates rise

Mortgage rates were mostly up compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed and jumbo loans increased, while 5/1 ARM rates declined.

Rates last updated on January 6, 2022.

The rates listed above are marketplace averages based on the assumptions shown here. Actual rates available on-site may vary. This story has been reviewed by in-house editor Bill McGuire. All rate data accurate as of Thursday, January 6th, 2022 at 7:30am.

>>See historical mortgage 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 mortgage rate rises, +0.11%

The average 30-year fixed-mortgage rate is 3.35 percent, an increase of 11 basis points over the last seven days. This time a month ago, the average rate on a 30-year fixed mortgage was lower, at 3.25 percent.

At the current average rate, you’ll pay principal and interest of $434.66 for every $100k you borrow.

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 fixed mortgage rate climbs,+0.09%

The average rate for the benchmark 15-year fixed mortgage is 2.62 percent, up 9 basis points from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost $396 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 come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more quickly.

5/1 ARM rate retreats, -0.01%

The average rate on a 5/1 ARM is 2.73 percent, sliding 1 basis point over the last week.

Adjustable-rate mortgages, or ARMs, are mortgage loans 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 those who expect to refinance or sell before the first or second adjustment. Rates could be considerably higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 2.73 percent would cost about $402 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan’s terms.

Current jumbo mortgage rate trends upward, +0.13%

The average rate you’ll pay for a jumbo mortgage is 3.36 percent, an increase of 13 basis points over the last seven days. Last month on the 6th, the average rate on a jumbo mortgage was lower, at 3.25 percent.

At today’s average rate, you’ll pay $434.66 per month in principal and interest for every $100k you borrow. Compared to last week, that’s $6.56 higher.

Recap: How mortgage rates have shifted

  • 30-year fixed mortgage rate: 3.35%, up from 3.24% last week, +0.11
  • 15-year fixed mortgage rate: 2.62%, up from 2.53% last week, +0.09
  • 5/1 ARM mortgage rate: 2.73%, down from 2.74% last week, -0.01
  • Jumbo mortgage rate: 3.36%, up from 3.23% last week, +0.13

Interested in refinancing? See rates for home refinance

Today’s 30-year mortgage refinance rate moves upward, +0.13%

The average 30-year fixed-refinance rate is 3.35 percent, up 13 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was lower, at 3.24 percent.

At the current average rate, you’ll pay $434.66 per month in principal and interest for every $100,000 you borrow. That’s an additional $6.56 per $100,000 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. The general consensus: If the economy continues to bounce back, and if drugmakers are successful in developing a vaccine, rates will rise. 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 6, 2022

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