Mortgage interest rates today for March 23, 2022: rates are rising

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A few major mortgage rates rose today. Both 15-year and 30-year fixed mortgage rates were higher. We also saw an upward trend in the average 5/1 adjustable rate mortgage rate.

30 Year Fixed Rate Mortgages

The average 30-year fixed mortgage rate is 4.52%, up 6 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 often have a higher interest rate than a 15-year fixed rate mortgage, but also a lower monthly payment. 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 rate on a 15-year fixed mortgage is 3.84%, an increase of 18 basis points from seven days ago. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and interest rate will have a higher monthly payment. However, as long as you can afford the monthly payments, a 15-year loan has several advantages. You will generally get a lower interest rate and pay less interest in total because you are paying off your mortgage much faster.

5/1 Adjustable Rate Mortgages

A 5/1 ARM has an average rate of 4.53%, an addition of 5 basis points from a week ago. With an ARM mortgage, you’ll typically get a lower interest rate than a 30-year fixed mortgage for the first five years. But since the rate changes with the market rate, you might end up paying more after that time, as described in your loan terms. If you plan to sell or refinance your home before the rate changes, an adjustable rate mortgage might be right for you. Otherwise, market fluctuations could significantly increase your interest rate.

Mortgage Rate Trends

While 2022 started off 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 a variety of 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 rates collected by Bankrate, which is owned by the same parent company as CNET, to track daily mortgage rate trends. This table summarizes the average rates offered by lenders nationwide:

Current Average Mortgage Interest Rates

Type of loan Interest rate A week ago Change
30-year fixed rate 4.52% 4.46% +0.06
Fixed rate over 15 years 3.84% 3.66% +0.18
30-year jumbo mortgage rate 3.16% 2.96% +0.20
30-year mortgage refinance rate 4.50% 4.44% +0.06

Updated March 23, 2022.

How to Shop for the Best Mortgage Rate

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 goals and your overall financial situation. Factors that affect the interest rate you might get on your mortgage include: your credit score, your down payment, your loan-to-value ratio, and your debt-to-income ratio. 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. Besides the interest rate, other factors including closing costs, fees, discount points, and taxes may also factor into the cost of your home. Be sure to talk to a variety of lenders – such as local and national banks, credit unions, and online lenders – and a comparison store to find the best mortgage for you.

How does the loan term affect my mortgage?

One important thing to consider when choosing a mortgage loan is the term 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. For fixed rate mortgages, interest rates are fixed for the term of the loan. Unlike a fixed rate mortgage, an adjustable rate mortgage’s interest rates are only fixed for a certain amount of time (usually five, seven or 10 years). After that, the rate fluctuates annually depending on the market interest rate.

When choosing between a fixed rate mortgage and an adjustable rate mortgage, you need to consider how long you plan to stay in your home. Fixed rate mortgages might be more suitable for those who plan to stay in a home for a while. Fixed rate mortgages offer more stability over time compared to adjustable rate mortgages, but adjustable rate mortgages can sometimes offer lower interest rates upfront. However, you may get a better deal with an adjustable rate mortgage if you only plan to keep your home for a few years. There is no best loan term as a general rule; it all depends on your goals and your current financial situation. Be sure to do your research and think about your own priorities when choosing a mortgage.

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