Today’s national mortgage & refinance rates, January 18th, 2022: Rates rise

National 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 jumped.

Rates as of January 18, 2022.

The rates listed above are averages based on the assumptions indicated here. Actual rates available within the site may vary. This story has been reviewed by Bill McGuire. All rate data accurate as of Tuesday, January 18th, 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 interest rates

Today’s 30-year mortgage rate moves higher, +0.09%

The average 30-year fixed-mortgage rate is 3.58 percent, an increase of 9 basis points over the last seven days. A month ago, the average rate on a 30-year fixed mortgage was lower, at 3.20 percent.

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

15-year mortgage trends upward,+0.15%

The average rate you’ll pay for a 15-year fixed mortgage is 2.91 percent, up 15 basis points over the last seven days.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $415 per $100k borrowed. That may put more pressure on your monthly budget than a 30-year mortgage would, 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 more rapidly.

5/1 adjustable rate mortgage moves up, +0.03%

The average rate on a 5/1 adjustable rate mortgageis 2.77 percent, ticking up 3 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 loans. These types of loans 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 2.77 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 trends upward, +0.07%

The average jumbo mortgage rate today is 3.58 percent, up 7 basis points since the same time last week. This time a month ago, the average rate on a jumbo mortgage was lesser, at 3.19 percent.

At today’s average rate, you’ll pay principal and interest of $447.93 for every $100k you borrow.

In summary: How mortgage interest rates have shifted

  • 30-year fixed mortgage rate: 3.58%, up from 3.49% last week, +0.09
  • 15-year fixed mortgage rate: 2.91%, up from 2.76% last week, +0.15
  • 5/1 ARM mortgage rate: 2.77%, up from 2.74% last week, +0.03
  • Jumbo mortgage rate: 3.58%, up from 3.51% last week, +0.07

Interested in refinancing? See mortgage refinance rates

30-year mortgage refinance rate trends higher, +0.07%

The average 30-year fixed-refinance rate is 3.57 percent, up 7 basis points from 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.

Rate lock advice and recommendations

A rate lock guarantees your mortgage interest rate for a specified period of time. Lenders often offer 30-day rate locks for a nominal fee or roll the price of the lock into your loan. Some mortgage lenders will lock rates for longer periods, sometimes for more than 60 days, but those locks can be costly. In today’s unstable market, some lenders will lock an interest rate for only 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 mortgage rates are not predictable, there’s no guarantee that rates will stay where they are from week to week or even day to day. So, if you can lock in a low rate, then you should do so rather than gamble on interest rates falling even lower.

Remember: 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, with refinancing taking at least a month.

Keep reading:

Today’s featured lenders, January 18, 2022

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