Average mortgage rates were mostly up 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 remained flat.
Rates as of December 31, 2021.
These rates are marketplace averages based on the assumptions here. Actual rates displayed on-site may vary. This story has been reviewed by in-house editor Bill McGuire. All rate data accurate as of Friday, December 31st, 2021 at 7:30am.
>>View historical mortgage interest 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 interest rates
- 30-year mortgage rises, +0.08%
- 15-year mortgage rate climbs,+0.04%
- 5/1 adjustable rate mortgage flat for the week
- Jumbo mortgage rate moves higher, +0.08%
- Recap: How mortgage interest rates have shifted
- Interested in refinancing? See mortgage refinance rates
- Current 30 year mortgage refinance rate moves upward, +0.09%
- Where to get the best rates
- Learn more:
- Featured lenders for December 31, 2021
Mortgage interest rates
30-year mortgage rises, +0.08%
The average rate for a 30-year fixed mortgage is 3.27 percent, an increase of 8 basis points since the same time last week. This time a month ago, the average rate on a 30-year fixed mortgage was lower, at 3.23 percent.
At the current average rate, you’ll pay principal and interest of $434.66 for every $100,000 you borrow. That’s an additional $6.56 per $100,000 compared to last week.
Use Bankrate’s mortgage rate calculator to approximate your monthly payments and see how much you’ll save by adding extra payments. This calculator will also help you calculate how much interest you’ll pay over the life of your loan.
15-year mortgage rate climbs,+0.04%
The average rate you’ll pay for a 15-year fixed mortgage is 2.54 percent, up 4 basis points over the last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost $396 per $100,000 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 flat for the week
The average rate on a 5/1 adjustable rate mortgageis 2.74 percent, unchanged over the last week.
Adjustable-rate mortgages, or ARMs, are mortgage loans that come with a floating interest rate. In other words, the interest rate can change from time to time throughout the life of the loan, unlike fixed-rate loans. These types of loans are best for those 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 2.74 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, +0.08%
The current average rate you’ll pay for jumbo mortgages is 3.26 percent, an increase of 8 basis points from a week ago. A month ago, the average rate for jumbo mortgages was below that, at 3.22 percent.
At the current average rate, you’ll pay a combined $434.66 per month in principal and interest for every $100k you borrow. That’s $6.56 higher compared with last week.
Recap: How mortgage interest rates have shifted
- 30-year fixed mortgage rate: 3.27%, up from 3.19% last week, +0.08
- 15-year fixed mortgage rate: 2.54%, up from 2.50% last week, +0.04
- 5/1 ARM mortgage rate: 2.74%, the same as last week
- Jumbo mortgage rate: 3.26%, up from 3.18% last week, +0.08
Interested in refinancing? See mortgage refinance rates
Current 30 year mortgage refinance rate moves upward, +0.09%
The average 30-year fixed-refinance rate is 3.25 percent, up 9 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was lower, at 3.20 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 $6.56 higher compared with last week.
Where to get the best rates
Mortgage rates can vary largely based on overall market forces, the size of the loan, your location, your financial situation and how motivated lenders are to get your business. Keep in mind that the rates we cite are averages–some people will be quoted higher or lower or that exact rate, and the rate may change daily even at the same lender.
It’s important when you’re looking for a mortgage to shop around and compare all the terms of your offers, not just the interest rate you’re being quoted. Your best rate and terms may be from an online lender, the bank down the street or perhaps through a mortgage broker. You won’t know unless you shop multiple lenders through multiple channels.
Bankrate is a great place to start, because you can take advantage of our mortgage rate comparison tool and remain up to date on current rates. If you’re not happy with the results there, you should check with the institution where you do your banking, and other small lenders like credit unions or local banks.