Today’s national mortgage & refinance rates, May 13th, 2022: Rates rise

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Average mortgage rates edged 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 moved higher.

Current average mortgage rates
Loan term Today’s Rate Last week Change
30-year mortgage rate 5.57% 5.42% +0.15
15-year mortgage rate 4.81% 4.72% +0.09
5/1 ARM mortgage rate 3.85% 3.77% +0.08
30-year jumbo mortgage rate 5.55% 5.38% +0.17

Rates accurate as of May 13, 2022.

The rates listed above are marketplace averages based on the assumptions here. Actual rates available across the site may vary. This story has been reviewed by Bill McGuire. All rate data accurate as of Friday, May 13th, 2022 at 7:30 a.m.

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 trends higher, +0.15%

The average rate for a 30-year fixed mortgage is 5.57 percent, an increase of 15 basis points since the same time last week. Last month on the 13th, the average rate on a 30-year fixed mortgage was lower, at 5.07 percent.

At the current average rate, you’ll pay a combined $569.04 per month in principal and interest for every $100k you borrow. That’s an extra $7.51 compared with last week.

30-year mortgage vs. 15-year mortgage

Traditional lending practices defer to the 30-year, fixed-rate mortgage as the go-to for most borrowers as it allows the borrower to disperse mortgage payments out over 30 years, keeping their monthly payment lower.

With a 15-year mortgage, however, borrowers are able to pay off their loan in half the time — if they’re able and willing to bump up the amount of their monthly loan payment. The primary difference between qualifying for a 15-year versus a 30-year mortgage is that you’ll need a higher income and lower debt-to-income ratio to obtain a 15-year mortgage because the monthly mortgage payments are inflated.

15-year fixed mortgage rate advances,+0.09%

The average rate you’ll pay for a 15-year fixed mortgage is 4.81 percent, up 9 basis points over the last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $525 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 come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more rapidly.

5/1 adjustable rate mortgage moves up, +0.08%

The average rate on a 5/1 ARM is 3.85 percent, ticking up 8 basis points since the same time last week.

Adjustable-rate mortgages, or ARMs, are home loans that come with a floating interest rate. To put it another way, the interest rate can change intermittently throughout the life of the loan, unlike fixed-rate mortgages. These loan types are best for those who expect to sell or refinance 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 3.85 percent would cost about $468 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.

Jumbo mortgage rate advances, +0.17%

is 5.55 percent, an increase of 17 basis points since the same time last week. A month ago, the average rate on a jumbo mortgage was below that, at 5.01 percent.

At today’s average rate, you’ll pay principal and interest of $569.04 for every $100k you borrow. Compared to last week, that’s $14.98 higher.

Summary: How mortgage interest rates have changed

  • 30-year fixed mortgage rate: 5.57%, up from 5.42% last week, +0.15
  • 15-year fixed mortgage rate: 4.81%, up from 4.72% last week, +0.09
  • 5/1 ARM mortgage rate: 3.85%, up from 3.77% last week, +0.08
  • Jumbo mortgage rate: 5.55%, up from 5.38% last week, +0.17

Refinance rates

30-year mortgage refinance advances, +0.13%

The average 30-year fixed-refinance rate is 5.53 percent, up 13 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was lower, at 5.07 percent.

At the current average rate, you’ll pay $569.04 per month in principal and interest for every $100,000 you borrow. That’s $14.98 higher compared with last week.

Mortgage rate trends: Where rates are 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 different mortgage terms

The 30-year fixed mortgage is the most popular loan for homeowners. 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.

6 steps to obtaining the best mortgage rate

  1. Improve your credit score
  2. Build a record of employment
  3. Save up for a down payment
  4. Go for a 15-year fixed-rate mortgage
  5. Shop among multiple lenders
  6. Lock in your rate

Learn more about how these 6 steps can secure your lowest rate.

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