Current mortgage and refinance rates for January 20th, 2022

Mortgage 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 jumped.

Rates accurate as of January 20, 2022.

The rates listed above are 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 Thursday, January 20th, 2022 at 7:30am.

>>See historical mortgage rate trends

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 moves up, +0.09%

The average rate for a 30-year fixed mortgage is 3.59 percent, up 9 basis points from a week ago. A month ago, the average rate on a 30-year fixed mortgage was lower, at 3.19 percent.

At the current average rate, you’ll pay principal and interest of $447.93 for every $100,000 you borrow.

The 30-year mortgage is the most popular option for borrowers. It has a number of advantages. Among them:

  • Lower monthly payment. The 30-year mortgage offers lower, more affordable payments spread over time compared with shorter-term mortgages.
  • 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 mortgage with a lower monthly cost can allow you to save more for retirement.

15-year mortgage rate moves up,+0.10%

The average 15-year fixed-mortgage rate is 2.92 percent, up 10 basis points from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $415 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 faster.

5/1 adjustable rate mortgage trends higher, +0.02%

The average rate on a 5/1 adjustable rate mortgageis 2.76 percent, up 2 basis points 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 periodically 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 much higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 2.76 percent would cost about $409 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 goes up, +0.08%

The average rate for the benchmark jumbo mortgage is 3.59 percent, an increase of 8 basis points over the last seven days. This time a month ago, the average rate for jumbo mortgages was lesser, at 3.18 percent.

At the average rate today for a jumbo loan, you’ll pay $447.93 per month in principal and interest for every $100k you borrow.

Summary: How mortgage rates have moved over the past week

  • 30-year fixed mortgage rate: 3.59%, up from 3.50% last week, +0.09
  • 15-year fixed mortgage rate: 2.92%, up from 2.82% last week, +0.10
  • 5/1 ARM mortgage rate: 2.76%, up from 2.74% last week, +0.02
  • Jumbo mortgage rate: 3.59%, up from 3.51% last week, +0.08

Interested in refinancing? See mortgage refinance rates

Current 30 year mortgage refinance rate moves up, +0.08%

The average 30-year fixed-refinance rate is 3.58 percent, up 8 basis points compared with a week ago. 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 $447.93 per month in principal and interest for every $100,000 you borrow.

Current mortgage rate environment

Mortgage rates have been volatile because of the COVID-19 pandemic. Generally, though, 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.

What comes next:

Featured lenders for today, January 20, 2022

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *