Compare today’s mortgage and refinance rates, January 7, 2022 – Majority of rates rise

National 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 ticked up, while 5/1 ARM rates declined.

Rates accurate as of January 7, 2022.

The rates listed here are averages based on the assumptions shown here. Actual rates listed on-site may vary. This story has been reviewed by in-house editor Bill McGuire. All rate data accurate as of Friday, January 7th, 2022 at 7:30am.

>>View historical mortgage rate trends, from the 70s to today

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

Today’s 30-year mortgage rate rises, +0.16%

The average rate for a 30-year fixed mortgage is 3.43 percent, up 16 basis points over the last week. This time a month ago, the average rate on a 30-year fixed mortgage was lower, at 3.25 percent.

At the current average rate, you’ll pay a combined $441.27 per month in principal and interest for every $100,000 you borrow. That’s an extra $6.61 compared with last week.

15-year mortgage rate trends higher,+0.15%

The average rate for a 15-year fixed mortgage is 2.69 percent, up 15 basis points from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost $402 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 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 falls, -0.01%

The average rate on a 5/1 adjustable rate mortgageis 2.73 percent, sliding 1 basis point from a week ago.

Adjustable-rate mortgages, or ARMs, are mortgage 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 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 2.73 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.

Current jumbo mortgage rate goes up, +0.19%

Today’s average rate for jumbo mortgages is 3.45 percent, an increase of 19 basis points since the same time last week. A month ago, the average rate on a jumbo mortgage was lower, at 3.25 percent.

At today’s average jumbo rate, you’ll pay a combined $441.27 per month in principal and interest for every $100k you borrow. That’s $6.61 higher compared with last week.

In summary: How interest rates have changed

  • 30-year fixed mortgage rate: 3.43%, up from 3.27% last week, +0.16
  • 15-year fixed mortgage rate: 2.69%, up from 2.54% last week, +0.15
  • 5/1 ARM mortgage rate: 2.73%, down from 2.74% last week, -0.01
  • Jumbo mortgage rate: 3.45%, up from 3.26% last week, +0.19

Refinance rates

30-year mortgage refinance rate trends upward, +0.19%

The average 30-year fixed-refinance rate is 3.44 percent, up 19 basis points compared with a week ago. A month ago, the average rate on a 30-year fixed refinance was lower, at 3.24 percent.

At the current average rate, you’ll pay $441.27 per month in principal and interest for every $100,000 you borrow. That’s up $6.61 from what it would have been last week.

How do mortgage rates affect homebuyers?

In a housing boom, low mortgage rates can present pros and cons for borrowers. One pro: Low rates give borrowers more buying power. A $300,000 loan at 4 percent equates to a monthly payment of $1,432. If rates fall to 3 percent, the payment plunges to $1,265.

One downside, however, is that a significant decline in mortgage rates can help push up home prices. Indeed, home values have increased in recent months.

Here’s an example to show how soaring home prices and plunging mortgage rates can have offsetting effects. Let’s say you chose not to buy a $300,000 home a year ago, when the 30-year mortgage rate was around 3.75 percent. Your 20 percent down payment would’ve been $60,000 and your monthly payment would’ve been $1,111.

Today, the price of the same home has jumped to $335,000, but you can land a 30-year loan at 3 percent. As a result, your monthly payment rises only slightly, to $1,130. However, you’ll have to come up with an extra $7,000 to make a 20 percent down payment.

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