Mortgage interest rates from April 14, 2022: rates are increasing

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A handful of prime mortgage rates rose today. Fixed 15-year and 30-year mortgage rates have increased. For variable rates, the 5/1 adjustable rate mortgage also increased.

Mortgage rates have been slowly rising since the beginning of this year and are expected to rise throughout 2022. Although rates are above their all-time highs set at the start of the pandemic, they are still relatively low. Interest rates are dynamic – they go up and down 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 interest rate is 5.06%, up 18 basis points from a week ago. (One basis point equals 0.01%.) Thirty-year fixed-rate mortgages are the most common loan term. A 30-year fixed rate mortgage will generally have a lower monthly payment than a 15-year one, but often a higher interest rate. Although you’ll pay more interest over time – you’re paying off your loan over a longer period – if you’re looking for a lower monthly payment, a 30-year fixed mortgage may be a good option.

15-year fixed rate mortgages

The average 15-year fixed mortgage rate is 4.30%, up 24 basis points from a week 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. However, as long as you can afford the monthly payments, a 15-year loan has several advantages. 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 5.01%, an addition of 18 basis points from the same period last week. With a variable rate mortgage, you’ll generally get a lower interest rate than a 30-year fixed mortgage for the first five years. However, market changes could cause your interest rate to increase after this period, as stated in the terms of your loan. For this reason, an adjustable rate mortgage could be a good option if you plan to sell or refinance your home before the rate changes. Otherwise, market fluctuations mean your interest rate could be much higher once the rate is adjusted.

Mortgage Rate Trends

Although 2022 started with low mortgage rates, there has been a slight uptick recently and rates are expected to continue to rise throughout 2022. Mortgage rates are influenced by various 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 six more times this year. However, with the ongoing war in Ukraine, we have seen some fluctuations in mortgage rates, as global instability usually leads to lower interest rates. While you can expect rates to rise and fall for these reasons, in general, if you’re looking to buy a home in 2022, you should be prepared for interest rates to continue to rise.

We use information collected by Bankrate, which is owned by the same parent company as CNET, to track rate changes over time. This table summarizes the average rates offered by lenders nationwide:

Current Average Mortgage Interest Rates

Type of loan Interest rate A week ago Switch
30-year fixed rate 5.06% 4.88% +0.18
Fixed rate over 15 years 4.30% 4.06% +0.24
30-year jumbo mortgage rate 3.54% 3.38% +0.16
30-year mortgage refinance rate 5.06% 4.83% +0.23

Updated April 14, 2022.

How to find the best mortgage rates

To find a personalized mortgage rate, talk to your local mortgage broker or use an online mortgage service. In order to find the best home loan, you will need to consider your current goals and finances. A range of factors — including your down payment, credit score, loan-to-value ratio, and debt-to-income ratio — will all affect your mortgage interest rate. Having a good credit rating, a larger down payment, low DTI, low LTV, or any combination of these factors can help you get a lower interest rate. Along with the mortgage interest rate, other costs including closing costs, fees, discount points, and taxes may also factor into the cost of your home. Be sure to compare with several lenders, including credit unions and online lenders in addition to local and national banks, to get a mortgage that’s right for you.

How does the loan term affect my mortgage?

When choosing a mortgage, you need to consider the length of the loan or the payment schedule. The most commonly offered mortgage terms are 15 and 30 years, although you can also find 10, 20 and 40 year mortgages. Mortgages are further divided into fixed rate and variable rate mortgages. Interest rates on a fixed rate mortgage are stable for the life of the loan. Unlike a fixed rate mortgage, an adjustable rate mortgage’s interest rates are only fixed for a certain term (usually five, seven or 10 years). After that, the rate fluctuates annually depending on the market interest rate.

An important factor to consider when choosing between a fixed rate and variable rate mortgage is how long you plan to live in your home. Fixed rate mortgages might be better suited if you plan to live in a house for a while. Fixed rate mortgages offer more stability over time compared to adjustable rate mortgages, but adjustable rate mortgages may offer lower interest rates upfront. If you don’t plan on keeping your new home for more than three to ten years, an adjustable rate mortgage might get 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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