Mortgage interest rates today, March 29, 2022 | Rates tend to rise
Looking at today’s mortgage rates, a variety of prominent rates have gone up. The average 30-year and 15-year fixed mortgages both trended upwards. For variable rates, the 5/1 Variable Rate Mortgage (ARM) has also increased.
After nearly two years of record high mortgage rates, 2022 has started with rates nearing levels we haven’t seen since before the pandemic.
This doesn’t mean you have to cancel your home buying or refinancing plans. Yes, rates are higher than they were in 2021, but it’s important to keep in mind that 30-year fixed rates are still much lower than they were a few years ago in sadness.
Plus, a home buying decision isn’t just about an interest rate. Buying a house is making a lifestyle choice. While the mortgage interest rate market can shape a decision, it’s wise not to base it on just a few basis points of a mortgage rate. The most important thing to consider is setting a realistic home buying budget and sticking to it.
Let’s take a look at current mortgage rates, where rates have been in the past, and what it all means for the borrower.
Check out today’s rates:
Mortgage rate forecast: what determines the evolution of mortgage rates?
Since the beginning of 2022, mortgage rates have increased significantly. The economy is in post-pandemic recovery mode and record inflation are two of the factors driving the trend towards higher rates. The Federal Reserve is expected to raise its short-term interest rate and make other changes to deal with high inflation. These measures are expected to increase borrowing costs.
Russia’s war in Ukraine is having an impact on global financial markets. We are seeing rising gasoline prices and falling stock prices. As a result, the market has become more uncertain and volatile. Another concern is the possible resurgence of COVID-19 variants. In general, the Omicron variant has declined in cases in the United States, but its future cannot be predicted with certainty.
Most experts agree that mortgage rates will rise throughout 2022. However, there will be a lot of short-term volatility.
Current Mortgage Rates: Is It a Good Time to Buy a Home Right Now?
Even with recent dramatic increases, mortgage rates remain at relatively low levels and are still considered historically favorable.
Historically low interest rates helped offset rising house prices. But the overall cost of home ownership is now rising with rising rates. With a combination of limited supply of homes, prices have risen significantly from pre-pandemic levels. Massive buyer demand and rising home construction costs are also contributing to the surge.
A point or two difference can mean a lot of money on a 30-year mortgage. But experts advise against trying to time the market to get the best mortgage rate. It’s more important to focus on finding the right home and doing it when your personal lifestyle and financial situation indicate that it’s the right time. Mortgage lender rates can vary widely. In order to get the best deal, shop around between a few different mortgage lenders.
30 Year Fixed Mortgage Rate History
Currently, rates are higher than they were in the low rate years of 2020 and 2021, but are still not too high if you zoom out before that time. Rates were well above 4% in 2018-19. A “good” rate before 2008 was around 5%. Despite crossing the psychological barrier of 4%, mortgage interest rates remain very good in the long term.
Bankrate survey data is generally used on this page, but Freddie Mac survey data is shown here. Freddie Mac is a government sponsored organization that collects mortgage data. Rates shown here may differ from rates on other charts, but historically they generally follow each other. A look back at historic Freddie Mac rates can give you a good idea of how current rates compare to those of the past two decades.
Closing costs and loan costs
Whenever you take out a mortgage, you’ll want to be aware of closing costs. There is usually 3-6% of the loan amount in closing costs, including origination fees, prepaid interest, and property taxes. Choosing a higher interest rate in exchange for credit from the lender can lower your upfront costs. You may sell your home or refinance your home in five to eight years. This strategy could therefore save you money in the short term.
Today’s Mortgage Refinance Rates
Checking mortgage refinance rates today, the average rate for a 30-year fixed refinance saw a decline, while 15-year fixed refinance rates rose. Shorter-term 10-year fixed rate refinance mortgages have increased.
Take a look at today’s refinance rates:
Compare national mortgage rates from various lenders.
30-year fixed mortgage rates
For a 30-year fixed rate mortgage, the average rate you’ll pay is 4.56%, up 1 basis point from seven days ago.
15-year mortgage interest rate
The median rate for a 15-year fixed mortgage is 3.88%, up 10 basis points from seven days ago.
The monthly payment on a 15-year fixed rate mortgage is higher than what you would pay on a 30-year mortgage. However, 15-year loans have significant benefits: you’ll pay thousands less in interest and pay off your loan much faster.
ARM 5/1 tariffs
A 5/1 ARM has an average rate of 3.26%, up 12 basis points from last week.
A variable rate mortgage is ideal for borrowers who will refinance or sell before the rate changes. If not, their interest rates could end up being significantly higher after a rate adjustment.
For the first five years, a 5/1 ARM will typically have a lower interest rate than a 30-year fixed mortgage. Keep in mind that depending on your loan rate adjustment, your payment may increase significantly.
How we calculate our mortgage rates
We use daily rate data from Bankrate for our mortgage rate trends. These overnight rates are based on a specific personal profile, which only includes loans for primary residences where the borrower has a FICO score of 740+. Bankrate is part of the same parent company as NextAdvisor.
This table shows current average rates based on information provided to Bankrate by lenders nationwide:
Updated March 29, 2022.
Frequently Asked Questions (FAQ) About Mortgage Rates:
How to get the lowest mortgage rate?
Shopping around for a mortgage is one of the best ways to get the lowest mortgage interest rate.
Your mortgage rate depends on a number of factors that lenders consider when assessing the risk of giving you a mortgage. Your credit score is factored into the decision. And even the value of the property relative to your loan balance is important. So putting more money into your down payment can lower your mortgage rate.
But lenders will look at your situation differently. So you can provide the same documentation to three different mortgage providers and receive mortgage offers with vastly different rates and fees.
When should I lock in my mortgage rate?
It is impossible to know which direction mortgage rates will go from one day to the next. That’s why a mortgage rate lock is such a useful tool, because it protects you if rates go up. And since interest rates are relatively low right now, you should lock in your rate as soon as possible.
A rate lock will only last for a certain amount of time, usually 30 to 60 days. If you’re having a problem with closing and it looks like your foreclosure rate is expiring, you should talk to your lender about it. It may offer a lock extension, however, you may need to pay a fee for this privilege.