Compare today’s mortgage and refinance rates, January 5th, 2022 – Rates rise

Average mortgage rates moved 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 increased.

Rates as of January 5, 2022.

The rates listed here are marketplace averages based on the assumptions shown here. Actual rates listed on-site may vary. This story has been reviewed by Bill McGuire. All rate data accurate as of Wednesday, January 5th, 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 rate trends upward, +0.10%

The average rate you’ll pay for a 30-year fixed mortgage is 3.34 percent, up 10 basis points from a week ago. A month ago, the average rate on a 30-year fixed mortgage 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.

The popular 30-year mortgage has a number of advantages, including:

  • Lower monthly payment. Compared to a shorter-term mortgage, such as 15 years, the 30-year mortgage offers more affordable monthly payments spread over time.
  • Stability. With the 30-year, you lock in a consistent principal and interest payment. That predictability lets you 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-rate mortgage with a smaller monthly payment can allow you to save more for retirement.

15-year fixed mortgage rate increases,+0.12%

The average rate you’ll pay for a 15-year fixed mortgage is 2.62 percent, up 12 basis points from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $396 per $100k 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 save thousands of dollars over the life of the loan in total interest paid and build equity much more rapidly.

5/1 adjustable rate mortgage goes up, +0.01%

The average rate on a 5/1 ARM is 2.75 percent, adding 1 basis point since the same time last week.

Adjustable-rate mortgages, or ARMs, are home loans that come with a floating interest rate. In other words, the interest rate can change intermittently throughout the life of the loan, unlike fixed-rate loans. These types of loans are best for people who expect to refinance or sell 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 2.75 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.

Jumbo mortgage rate moves higher, +0.11%

The average rate you’ll pay for a jumbo mortgage is 3.35 percent, up 11 basis points from a week ago. Last month on the 5th, the average rate was below that, at 3.16 percent.

At today’s average jumbo rate, you’ll pay $434.66 per month in principal and interest for every $100k you borrow.

In summary: How mortgage interest rates have changed this week

  • 30-year fixed mortgage rate: 3.34%, up from 3.24% last week, +0.10
  • 15-year fixed mortgage rate: 2.62%, up from 2.50% last week, +0.12
  • 5/1 ARM mortgage rate: 2.75%, up from 2.74% last week, +0.01
  • Jumbo mortgage rate: 3.35%, up from 3.24% last week, +0.11

Mortgage refinance rates

Current 30 year mortgage refinance rate moves up, +0.13%

The average 30-year fixed-refinance rate is 3.35 percent, up 13 basis points over the last seven days. A month ago, the average rate on a 30-year fixed refinance was lower, at 3.16 percent.

At the current average rate, you’ll pay $434.66 per month in principal and interest for every $100,000 you borrow. That’s an increase of $6.56 over what you would have paid last week.

Current mortgage rate landscape

The current mortgage rate environment has been unstable because of the coronavirus pandemic, but generally rates have been low. For a while, some lenders were increasing rates because they were struggling to deal with the demand. In general, however, rates are consistently below 4 percent and even dipping below 3%. This is an especially good time for people with good to excellent credit to lock in a low rate for a purchase loan. However, lenders are also raising credit standards for borrowers and demanding higher down payments as they try to dampen their risks.

Learn more:

Today’s featured lenders, January 5, 2022

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