Mortgage interest rates edged 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 moved higher.
| Loan term | Today’s Rate | Last week | Change |
|---|---|---|---|
| 30-year mortgage rate | 5.28% | 5.06% | +0.22 |
| 15-year mortgage rate | 4.45% | 4.30% | +0.15 |
| 5/1 ARM mortgage rate | 3.59% | 3.54% | +0.05 |
| 30-year jumbo mortgage rate | 5.23% | 5.01% | +0.22 |
Rates accurate as of April 21, 2022.
These rates are marketplace averages based on the assumptions shown 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 Thursday, April 21st, 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
30-year mortgage rate increases, +0.22%
The average rate you’ll pay for a 30-year fixed mortgage is 5.28 percent, up 22 basis points since the same time last week. A month ago, the average rate on a 30-year fixed mortgage was lower, at 4.53 percent.
At the current average rate, you’ll pay a combined $546.64 per month in principal and interest for every $100k you borrow. That’s up $7.37 from what it would have been last week.
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 mortgage advances,+0.15%
The average rate for a 15-year fixed mortgage is 4.45 percent, up 15 basis points over the last seven days.
Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $503 per $100,000 borrowed. That may squeeze 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 rapidly.
5/1 ARM rate trends upward, +0.05%
The average rate on a 5/1 ARM is 3.59 percent, ticking up 5 basis points over the last 7 days.
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 from time to time throughout the life of the loan, unlike fixed-rate mortgages. These types of loans 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 3.59 percent would cost about $448 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 interest rate moves up, +0.22%
The current average rate you’ll pay for jumbo mortgages is 5.23 percent, an increase of 22 basis points over the last week. Last month on the 21st, the average rate for jumbo mortgages was lower, at 4.52 percent.
At today’s average jumbo rate, you’ll pay principal and interest of $546.64 for every $100,000 you borrow. That’s $14.70 higher compared with last week.
Summary: How interest rates have shifted
- 30-year fixed mortgage rate: 5.28%, up from 5.06% last week, +0.22
- 15-year fixed mortgage rate: 4.45%, up from 4.30% last week, +0.15
- 5/1 ARM mortgage rate: 3.59%, up from 3.54% last week, +0.05
- Jumbo mortgage rate: 5.23%, up from 5.01% last week, +0.22
Refinance rates
30-year mortgage refinance increases, +0.19%
The average 30-year fixed-refinance rate is 5.25 percent, up 19 basis points over the last seven days. A month ago, the average rate on a 30-year fixed refinance was lower, at 4.49 percent.
At the current average rate, you’ll pay $546.64 per month in principal and interest for every $100,000 you borrow. That’s an additional $7.37 per $100,000 compared with last week.
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 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.
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. Much depends on the direction of the economy, and how well public health officials can contain the coronavirus pandemic. 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.
What comes next:
- How to buy a house in 2021
- Everything to know about FHA loans
- How PMI could benefit homebuyers
- The difference between APR and interest rate
- How to get a mortgage
- Mortgage calculator
- Best mortgage lenders
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