Today’s mortgage & refinance rates, January 3, 2022 – Majority of rates rise

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Average mortgage rates were mostly higher 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 remained flat.

Average mortgage rates
Product Rate Last week Change
30-year fixed 3.27% 3.19% +0.08
15-year fixed 2.54% 2.50% +0.04
5/1 ARM 2.74% 2.74% N/C
30-year fixed jumbo 3.26% 3.18% +0.08

Rates as of January 3, 2022.

The rates listed here are Bankrate’s overnight average rates and are based on the assumptions here. Actual rates listed across the site may vary. This story has been reviewed by in-house editor Bill McGuire. All rate data accurate as of Monday, January 3rd, 2022 at 7:30am.

>>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

Current 30 year mortgage rate goes up, +0.08%

The average rate for the benchmark 30-year fixed mortgage is 3.27 percent, up 8 basis points since the same time last week. This time a month ago, the average rate on a 30-year fixed mortgage was lower, at 3.18 percent.

At the current average rate, you’ll pay a combined $434.66 per month in principal and interest for every $100k you borrow. That’s $6.56 higher compared with last week.

15-year mortgage increases,+0.04%

The average rate you’ll pay for a 15-year fixed mortgage is 2.54 percent, up 4 basis points from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $396 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 faster.

5/1 ARM rate goes unchanged

The average rate on a 5/1 adjustable rate mortgageis 2.74 percent, unchanged over the 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 loan types are best for people who expect to sell or refinance before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 2.74 percent would cost about $402 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 rate moves upward, +0.08%

The average rate you’ll pay for a jumbo mortgage is 3.26 percent, up 8 basis points over the last seven days. This time a month ago, the average rate for jumbo mortgages was lower, at 3.17 percent.

At today’s average rate, you’ll pay principal and interest of $434.66 for every $100,000 you borrow. That’s an extra $6.56 compared with last week.

Rate review: How mortgage rates have changed

  • 30-year fixed mortgage rate: 3.27%, up from 3.19% last week, +0.08
  • 15-year fixed mortgage rate: 2.54%, up from 2.50% last week, +0.04
  • 5/1 ARM mortgage rate: 2.74%, unchanged from last week
  • Jumbo mortgage rate: 3.26%, up from 3.18% last week, +0.08

Refinance rates

Current 30 year mortgage refinance rate climbs, +0.09%

The average 30-year fixed-refinance rate is 3.25 percent, up 9 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was lower, at 3.17 percent.

At the current average rate, you’ll pay $434.66 per month in principal and interest for every $100,000 you borrow. Compared with last week, that’s $6.56 higher.

Lock your mortgage rate now or wait?

A rate lock guarantees your mortgage interest rate for a specified period of time. It’s common for lenders to offer 30-day rate locks for a fee or to include the price of the rate lock into your loan. Some lenders will lock rates for longer periods of time, sometimes for more than 60 days, but those locks can be expensive. In today’s volatile market, some lenders will lock an interest rate for only two weeks because they don’t want to take on unnecessary risk.

With a rate lock, if interest rates rise, you’re locked into the guaranteed rate. Some lenders have a floating-rate lock option, which allows you to get a lower rate if interest rates fall before you close your loan. In a falling rate environment, a float-down lock could be worth the cost. Because mortgage rates are not predictable, there’s no guarantee that rates will stay where they are from week to week or even day to day. So, if you can lock in a low rate, then you should do so rather than gamble on interest rates falling even lower.

It’s important to keep in mind: During the pandemic, all aspects of real estate and mortgage closings are taking much longer than usual. Expect the closing on a new mortgage to take at least 60 days, and expect refinancing to take at least a month.

What comes next:

Featured lenders, January 3, 2022