Mortgage and refinance rates today, March 25, 2022 | Rates pushed up
Looking at today’s mortgage rates, a variety of important rates have gone up. The averages for 30-year and 15-year fixed mortgages both increased. For variable rates, the 5/1 Variable Rate Mortgage (ARM) also climbed higher.
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.
Mortgage rates are currently:
Mortgage Rate Forecast: What’s Driving Mortgage Rate Changes?
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.
Are current mortgage rates good for buying 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 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.
Watch out for loan fees
Whenever you take out a mortgage, be sure to pay close attention to closing costs. These fees include loan origination fees, prepaid interest and property taxes, and can range from 3-6% of the loan amount. Accepting a higher interest rate, in exchange for credits from the lender, can help you reduce your outgoings. costs. You can save money in the short term by using this strategy, so don’t overlook it if you plan to sell your home or refinance it in five to eight years.
Looking at today’s mortgage refinance rates
Refinancing has become a little more expensive today as 30-year and 15-year fixed refinance mortgages have seen their average rates increase. Shorter-term 10-year fixed rate refinance mortgages also increased.
The refinancing averages for 30-year, 15-year and 10-year loans are:
Check out the mortgage rates that meet your specific needs.
30-Year Fixed-Rate Mortgage Rates
The average 30-year fixed mortgage interest rate is 4.54%, up 6 basis points from the previous week.
15-year fixed mortgage rates
The median rate for a 15-year fixed mortgage is 3.86%, up 16 basis points from a week ago.
The monthly payment on a 15-year fixed rate mortgage is higher than what you would pay on a 30-year mortgage. But 15-year loans have huge advantages: you’ll save thousands of dollars in interest and pay off your loan much faster.
5/1 Adjustable Rate Mortgage Rates
A 5/1 ARM has an average rate of 3.20%, an increase of 8 basis points from last week.
An ARM is ideal for households that 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 your payment could end up being several hundred dollars higher after a rate adjustment, depending on the terms of your loan.
How we calculate our mortgage rates
NextAdvisor average rates are taken from Bankrate daily rate data. These overnight rates are based on a specific personal financial profile, which only includes loans for single-family homes with a loan-to-value ratio of 80% or greater. Bankrate is part of the same parent company as NextAdvisor.
Current average rates shown below and based on the Bankrate Mortgage Rate Survey:
Rates exact as of March 25, 2022.
Frequently Asked Questions (FAQ) About Mortgage Rates:
How to get the best mortgage rate?
Getting loan offers from a few lenders is a great way to qualify for the lowest rate.
The mortgage rate you get depends on a variety of factors that lenders take into account when assessing the likelihood of you paying off your mortgage. Your credit score has an impact on your mortgage rate. And your loan-to-value (LTV) ratio matters too, so having a bigger down payment is better for your mortgage rate.
But banks will view 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.
Is it a good time to 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 have a problem with closing and it looks like your foreclosure rate is expiring, you should contact your lender. They may be able to extend the rate lock, however, you may need to pay a fee for this privilege.