Mortgage interest rates as of April 29, 2022: Rising rate trend

A few major mortgage rates increased today. Both 15-year and 30-year fixed mortgage rates increased slightly. The average rate of the most common type of variable rate mortgage, the 5/1 variable rate mortgage, also increased.

Mortgage rates have been slowly rising since the start of this year and are expected to rise through 2022. Rates are now closer to 2018 levels, surpassing historic lows seen at the height of the pandemic. At the same time, interest rates are dynamic – they rise and fall daily due to many economic factors. In general, now is a good time for potential buyers to lock in a lower rate rather than later this year. Talking with several lenders will help you find the best rate available for your financial situation.

30 Year Fixed Rate Mortgages

The average 30-year fixed mortgage rate is 5.42%, up 13 basis points from a week ago. (One basis point equals 0.01%.) The most commonly used loan term is a 30-year fixed mortgage. A 30 year fixed rate mortgage will generally have a smaller monthly payment than a 15 year mortgage, but often a higher interest rate. You won’t be able to pay off your home as quickly and you’ll pay more interest over time, but a 30-year fixed rate mortgage is a good option if you’re looking to minimize your monthly payment.

15-year fixed rate mortgages

The average rate for a 15-year fixed mortgage is 4.66%, an increase of 20 basis points from seven days ago. You will definitely have a higher monthly payment with a 15-year fixed mortgage compared to a 30-year fixed mortgage, even if the interest rate and loan amount are the same. But a 15-year loan will usually be the best deal, as long as you can afford the monthly payments. These typically include the ability to get a lower interest rate, pay off your mortgage sooner, and pay less total interest over the long term.

5/1 Adjustable Rate Mortgages

A 5/1 ARM has an average rate of 5.38%, an increase of 15 basis points from seven days ago. You’ll typically get a lower interest rate (compared to a 30-year fixed mortgage) with a 5/1 variable rate mortgage in the first five years of the mortgage. But changes in the market may cause your interest rate to increase after this period, as stated in the terms of your loan. For this reason, an ARM can be a good option if you plan to sell or refinance your home before the rate changes. If not, market fluctuations could significantly increase your interest rate.

Mortgage Rate Trends

Although 2022 started with low mortgage rates, there has been a steady increase recently and rates are expected to continue to rise throughout 2022. Mortgage rates are influenced by different economic factors. One of the main ones is government policy set by the Federal Reserve, which raised rates in March for the first time since 2018 in response to record inflation. The Fed plans to raise interest rates further this year, so if you’re looking to buy a home in 2022, you should be prepared for interest rates to continue to rise.

We use rates collected by Bankrate, which is owned by the same parent company as CNET, to track these daily rates. This table summarizes the average rates offered by lenders across the country:

Today’s Mortgage Interest Rates

Rates exact as of April 29, 2022.

How to find the best mortgage rates

You can get a personalized mortgage rate by connecting with your local mortgage broker or using an online calculator. Be sure to consider your current finances and goals when looking for a mortgage. Things that affect the mortgage rate you might get include: your credit score, your down payment, your loan-to-value ratio, and your debt-to-income ratio. Having a higher credit score, larger down payment, low DTI, low LTV, or any combination of these factors can help you get a lower interest rate. The interest rate isn’t the only factor that affects the cost of your home – be sure to factor in other costs too, such as fees, closing costs, taxes and discount points. You should shop around with multiple lenders, such as credit unions and online lenders, in addition to local and national banks, to get a mortgage that’s best for you.

What is the best loan term?

One important thing to keep in mind when choosing a mortgage is the term of the loan or the payment schedule. The most common mortgage terms are 15 and 30 years, although there are also 10, 20 and 40 year mortgages. Another important distinction is between fixed rate and adjustable rate mortgages. For fixed rate mortgages, interest rates are stable for the life of the loan. Unlike a fixed rate mortgage, an adjustable rate mortgage’s interest rates are only stable for a certain period of time (usually five, seven or 10 years). After that, the rate fluctuates annually based on the market rate.

When choosing between a fixed rate and variable rate mortgage, you need to consider how long you plan to stay in your home. If you plan to stay in a new home for the long term, fixed rate mortgages may be the best option. While variable rate mortgages may have lower interest rates initially, fixed rate mortgages are more stable over time. However, if you don’t plan on keeping your new home for more than three to ten years, an adjustable rate mortgage might give you a better deal. The best loan term depends entirely on your personal situation and goals, so be sure to consider what’s important to you when choosing a mortgage.

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