Today’s mortgage & refinance rates, February 3rd, 2022

National mortgage rates edged 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 rose.

Rates as of February 3, 2022.

These rates are marketplace averages based on the assumptions indicated here. Actual rates listed within the site may vary. This story has been reviewed by Bill McGuire. All rate data accurate as of Thursday, February 3rd, 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 rates for home purchase

30-year mortgage rate climbs, +0.04%

The average rate you’ll pay for a 30-year fixed mortgage is 3.77 percent, up 4 basis points since the same time last week. A month ago, the average rate on a 30-year fixed mortgage was lower, at 3.35 percent.

At the current average rate, you’ll pay principal and interest of $461.41 for every $100k you borrow.

15-year fixed mortgage advances,+0.06%

The average rate you’ll pay for a 15-year fixed mortgage is 3.15 percent, up 6 basis points over the last seven days.

Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $428 per $100,000 borrowed. The bigger payment may be a little tougher to find room for in your monthly budget than a 30-year mortgage payment 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 faster.

5/1 ARM moves up, +0.04%

The average rate on a 5/1 ARM is 2.84 percent, adding 4 basis points from a week ago.

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 mortgages. These types of loans are best for those who expect to refinance or sell before the first or second adjustment. Rates could be materially higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 2.84 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 interest rate trends higher, +0.02%

Today’s average rate for jumbo mortgages is 3.75 percent, an increase of 2 basis points over the last seven days. Last month on the 3rd, jumbo mortgages’ average rate was lesser, at 3.36 percent.

At today’s average rate, you’ll pay a combined $461.41 per month in principal and interest for every $100,000 you borrow.

Recap: How mortgage rates have changed

  • 30-year fixed mortgage rate: 3.77%, up from 3.73% last week, +0.04
  • 15-year fixed mortgage rate: 3.15%, up from 3.09% last week, +0.06
  • 5/1 ARM mortgage rate: 2.84%, up from 2.80% last week, +0.04
  • Jumbo mortgage rate: 3.75%, up from 3.73% last week, +0.02

Mortgage refinance rates

30-year mortgage refinance increases, +0.03%

The average 30-year fixed-refinance rate is 3.76 percent, up 3 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was lower, at 3.35 percent.

At the current average rate, you’ll pay $461.41 per month in principal and interest for every $100,000 you borrow.

When to lock your mortgage rate

A rate lock guarantees your interest rate for a specified period of time. It’s common for lenders to offer 30-day rate locks for a fee or to include the price of the rate lock into your loan. Some lenders will lock rates for longer periods, even exceeding 60 days, but those locks can be pricey. In today’s volatile market, some lenders will lock an interest rate for just two weeks to avoid unnecessary risk.

The benefit of a rate lock is that if interest rates rise, you’re locked into the guaranteed rate. You may be able to find a lender that offers a floating rate lock. A floating rate lock lets you get a lower rate if interest rates decline before closing your loan. It could be worth the cost in a declining rate environment. Because there is no guarantee of where mortgage rates will head in the future, it may be smart to lock in a low rate instead of holding out on rates for potentially decline further.

Keep in mind that during the pandemic, all aspects of real estate and mortgage closings are taking much longer than usual. Expect the closing on a new mortgage to take at least 60 days, and expect refinancing to take at least a month.

Learn more:

Today’s featured lenders, February 3, 2022

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