Mortgage rates moved higher for all loan terms 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.
|30-year fixed jumbo||3.51%||3.45%||+0.06|
Rates as of January 14, 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 Bill McGuire. All rate data accurate as of Friday, January 14th, 2022 at 7:30am.
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 goes up, +0.08%
The average rate for the benchmark 30-year fixed mortgage is 3.51 percent, up 8 basis points over the last week. A month ago, the average rate on a 30-year fixed mortgage was lower, at 3.24 percent.
At the current average rate, you’ll pay a combined $447.93 per month in principal and interest for every $100,000 you borrow. That’s up $6.66 from what it would have been last week.
The 30-year 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, more affordable 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.
15-year mortgage climbs,+0.14%
The average rate you’ll pay for a 15-year fixed mortgage is 2.83 percent, up 14 basis points since the same time last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $409 per $100k 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 rapidly.
5/1 ARM moves up, +0.02%
The average rate on a 5/1 adjustable rate mortgageis 2.75 percent, up 2 basis points from a week ago.
Adjustable-rate mortgages, or ARMs, are mortgage loans that come with a floating interest rate. In other words, the interest rate can change periodically throughout the life of the loan, unlike fixed-rate mortgages. These loan types 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 2.75 percent would cost about $402 for each $100,000 borrowed over the initial five years, but could ratchet higher by hundreds of dollars afterward, depending on the loan’s terms.
Current jumbo mortgage rate increases, +0.06%
The average rate you’ll pay for a jumbo mortgage is 3.51 percent, up 6 basis points since the same time last week. Last month on the 14th, the average rate on a jumbo mortgage was lesser, at 3.24 percent.
At the average rate today for a jumbo loan, you’ll pay principal and interest of $447.93 for every $100,000 you borrow. That’s an additional $6.66 per $100,000 compared to last week.
Recap: How mortgage rates have shifted
- 30-year fixed mortgage rate: 3.51%, up from 3.43% last week, +0.08
- 15-year fixed mortgage rate: 2.83%, up from 2.69% last week, +0.14
- 5/1 ARM mortgage rate: 2.75%, up from 2.73% last week, +0.02
- Jumbo mortgage rate: 3.51%, up from 3.45% last week, +0.06
30-year mortgage refinance rate advances, +0.07%
The average 30-year fixed-refinance rate is 3.51 percent, up 7 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was lower, at 3.21 percent.
At the current average rate, you’ll pay $447.93 per month in principal and interest for every $100,000 you borrow. That’s an extra $6.66 compared with last week.
Determining how much house you can afford
If you’re not sure how much of your income should go toward housing, follow the traditional 28/36 percent rule. Most financial advisers agree that people should spend no more than 28% of their gross income on housing (i.e., your mortgage payment or rent), and no more than 36% of their gross income on total debt, including mortgage payments, credit cards, student loans, medical bills and the like. Calculate how much house you can afford and determine your monthly payments.
- Getting preapproved for a mortgage
- Steps in the mortgage underwriting process
- How much will you pay in closing costs?
- The difference between APR and interest rate
- How to get the best mortgage rate
- Mortgage calculator
- Best mortgage lenders