Current national mortgage and refinance rates, February 21st, 2022

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 February 21, 2022.

These rates are marketplace averages based on the assumptions indicated here. Actual rates displayed within the site may vary. This story has been reviewed by in-house editor Bill McGuire. All rate data accurate as of Monday, February 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 interest rates

Today’s 30-year mortgage rate goes up, +0.19%

The average rate for the benchmark 30-year fixed mortgage is 4.19 percent, an increase of 19 basis points over the last week. Last month on the 21st, the average rate on a 30-year fixed mortgage was lower, at 3.68 percent.

At the current average rate, you’ll pay principal and interest of $482.04 for every $100,000 you borrow. That’s an extra $6.93 compared with 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 increases,+0.10%

The average rate you’ll pay for a 15-year fixed mortgage is 3.44 percent, up 10 basis points over the last seven days.

Monthly payments on a 15-year fixed mortgage at that rate will cost $441 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 save thousands of dollars over the life of the loan in total interest paid and build equity much more rapidly.

5/1 ARM rate moves upward, +0.05%

The average rate on a 5/1 adjustable rate mortgageis 2.93 percent, ticking up 5 basis points over the last 7 days.

Adjustable-rate mortgages, or ARMs, are mortgage terms 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 mortgages. 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 2.93 percent would cost about $415 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 loan interest rate climbs, +0.18%

The average rate you’ll pay for a jumbo mortgage is 4.19 percent, an increase of 18 basis points over the last seven days. Last month on the 21st, jumbo mortgages’ average rate was below that, at 3.69 percent.

At today’s average rate, you’ll pay principal and interest of $482.04 for every $100k you borrow. That’s an extra $6.93 compared with last week.

Summary: How interest rates have changed this week

  • 30-year fixed mortgage rate: 4.19%, up from 4.00% last week, +0.19
  • 15-year fixed mortgage rate: 3.44%, up from 3.34% last week, +0.10
  • 5/1 ARM mortgage rate: 2.93%, up from 2.88% last week, +0.05
  • Jumbo mortgage rate: 4.19%, up from 4.01% last week, +0.18

Interested in refinancing? See rates for home refinance

30-year mortgage refinance trends upward, +0.14%

The average 30-year fixed-refinance rate is 4.17 percent, up 14 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was lower, at 3.68 percent.

At the current average rate, you’ll pay $482.04 per month in principal and interest for every $100,000 you borrow. That’s up $6.93 from what it would have been last week.

Rate trends: 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 mortgage options

The 30-year fixed-rate mortgage is the most popular loan for homeowners. This mortgage has a number of advantages. Among them:

  • 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. Most experts predict that if the economy continues to bounce back and drugmakers develop a successful vaccine, mortgage rates will increase. However, if the economy suffers pandemic-related setbacks, rates will stay low or even fall further.

Learn more:

Featured lenders for February 21, 2022

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