Mortgage Rates Today Rise | December 21, 2021


Mmortgage interest rates are on the rise again. The rate on a 30-year fixed-rate mortgage is on average 3.569% today, up 0.046 percentage point. The rate for a 30-year refinance is also higher, rising to 3.761%. Almost all other loan categories also experience higher rates.

Competitive rates are always available for borrowers with strong credit who are considering buying a home or refinancing their current home loan.

  • The last rate for a 30 year fixed rate mortgage is 3.569%. ??
  • The last rate on a 15 year fixed rate mortgage is 2.542%. ??
  • The latest rate on a 5/1 ARM is 2.16%. ??
  • The latest rate on an ARM 7/1 is 2.993%. ??
  • The latest rate on a 10/1 ARM is 3.209%. ??

Money is everyday mortgage the rates reflect what a borrower with a 20% down payment and a credit score of 700 – roughly the national average – could pay if they applied for a home loan now. Daily rates are based on the average rate of 8,000 lenders offered to applicants on the previous business day. Freddie Mac’s weekly rates will generally be lower because they measure the rates offered to borrowers with a higher credit rating.

30-year fixed rate mortgage rates today

  • The 30-year rate is 3.569%.
  • It’s a day infold 0.046 percentage points.
  • It’s a month infold by 0.022 percentage points.

The 30 year fixed rate mortgage is the most popular loan among borrowers thanks to its stable interest rates and constant monthly payments. The long return on investment also offers an advantage since it results in more affordable monthly payments compared to a shorter term loan. However, the interest rate is usually higher, so you will pay more for the loan over time.

15 years fixed rate mortgage rates today

  • The 15-year rate is 2.542%.
  • It’s a day infold 0.023 percentage points.
  • It’s a month offold by 0.095 percentage point.

The shorter term of a 15-year fixed rate mortgage means that the monthly payments will be higher than those of an equivalent 30-year loan. However, the interest rate is usually lower, which means that you can save money over the life of the loan if you can afford these higher payments.

Variable rate mortgage rates today

  • The latest rate on a 5/1 ARM is 2.16%. ??
  • The latest rate on an ARM 7/1 is 2.993%. ??
  • The latest rate on a 10/1 ARM is 3.209%. ??

Variable rate mortgages will have a fixed rate introductory period which generally has a very low interest rate. However, once the fixed rate period ends, the rate will become adjustable and change periodically. For example, the rate on an ARM 5/1 is fixed for five years and then reset every year. This type of loan could be a good option if you do not plan to keep the house for the duration of the loan. Once the rate becomes adjustable, there could be a significant increase.

Current mortgage rates: VA, FHA and jumbo loan rates

The average rates for FHA, VA and jumbo loans are:

  • The rate on a 30-year FHA mortgage is 3.262%. ??
  • The rate for a 30-year VA mortgage is 3.353%. ??
  • The rate for a 30-year jumbo mortgage is 3.494%. ??

Current mortgage refinancing rates

The average refinancing rates for 30-year loans, 15-year loans and ARMs are:

  • The refinance rate on a 30-year fixed rate refinance is 3.761%. ??
  • The refinance rate on a 15 year fixed rate refinance is 2.654%. ??
  • The refinancing rate on an ARM 5/1 is 2.429%. ??
  • The refinancing rate on an ARM 7/1 is 3.159%. ??
  • The refinancing rate on an ARM 10/1 is 3.844%. ??

Where Are Mortgage Rates Going This Year?

Mortgage rates fell through 2020. Millions of homeowners responded to low mortgage rates by refinancing existing loans and taking out new ones. Many people have bought homes that they might not have been able to afford if the rates were higher. In January 2021, rates briefly fell to all-time low levels, but edged up slightly for the rest of the year.

Look ahead, experts believe that interest rates will rise further in 2022, but also modestly. Factors that could affect rates include continued economic improvement and more labor market gains. The Federal Reserve has also started cutting back on mortgage-backed securities purchases and announced that it plans to hike the federal funds rate three times in 2022 to fight rising inflation.

While mortgage rates are likely to rise, experts say the increase won’t happen overnight, and it won’t be a dramatic jump. Rates are expected to stay near their historically low levels throughout the first half of the year, rising slightly later in the year. Even with rates rising, this will still be a good time to finance a new home or refinance a mortgage.

Factors that influence mortgage rates include:

  • The Federal Reserve. The Fed took swift action when the pandemic hit the United States in March 2020. The Fed announced plans to move money through the economy by lowering the Federal Fund’s short-term interest rate between 0% and 0.25%, which is as low as they go. The central bank has also pledged to buy mortgage-backed securities and treasury bills, supporting the housing finance market, but started curtailing those purchases in November.
  • The 10-year Treasury note. Mortgage rates move at the same pace as the yields on 10-year government treasury bills. Yields fell below 1% for the first time in March 2020 and have risen since then. On average, there is typically a 1.8 point “spread” between Treasury yields and benchmark mortgage rates.
  • The economy in the broad sense. Unemployment rates and changes in gross domestic product are important indicators of the overall health of the economy. When employment and GDP growth are low, it means the economy is weak, which can lower interest rates. Thanks to the pandemic, unemployment levels reached record levels early last year and have yet to recover. GDP has also been affected, and although it has rebounded somewhat, there is still a lot of room for improvement.

Tips for getting the lowest mortgage rate possible

There is no universal mortgage rate that all borrowers receive. Qualifying for the lowest mortgage rates takes a bit of work and will depend on both personal financial factors and market conditions.

Check your credit score and your credit report. Mistakes or other red flags can lower your credit score. The borrowers with the highest credit scores will get the best rates, so it’s essential to check your credit report before you begin the home search process. Taking action to correct mistakes will help increase your score. If you have high credit card balances, paying them off can also give you a quick boost.

Save money for a large down payment. This will lower your loan-to-value ratio, which means how much of the home’s price the lender has to finance. A lower LTV usually results in a lower mortgage rate. Lenders also like to see money that has been saved in an account for at least 60 days. It tells the lender that you have the money to finance the purchase of the house.

Shop around for the best rate. Don’t settle for the first interest rate a lender offers you. Check with at least three different lenders to see who is offering the lowest interest rate. Also consider the different types of lenders, such as credit unions and online lenders, in addition to traditional banks.

As well. take the time to learn about the different types of loans. While the 30-year fixed-rate mortgage is the most common type of mortgage, consider a shorter-term loan such as a 15-year loan or an adjustable rate mortgage. These types of loans often have a lower rate than a conventional 30-year mortgage. Compare the costs of everyone to see which one best suits your needs and your financial situation. Government loans – such as those backed by the Federal Housing Authority, the Department of Veterans Affairs, and the Department of Agriculture – may be more affordable options for those who qualify.

Finally, lock in your rate. Locking in your rate once you find the right rate, the right loan product, and the lender will help ensure that your mortgage rate does not increase until the loan closes.

Our mortgage rate methodology

Money’s Daily Mortgage Rates show the average rate offered by over 8,000 lenders in the United States for which the most recent rates are available. Today we’re posting the rates for Monday, December 20, 2021. Our rates reflect what a typical borrower with a credit score of 700 can expect to pay on a home loan right now. These rates were offered to people with a 20% deposit and include discount points.

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