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Today’s Mortgage Rates Move Back Up | December 21, 2021

Today's Mortgage Rates Move Back Up | December 21, 2021
Written by Publishing Team

Mortgage interest rates are rising again. The 30-year mortgage rate is on average at 3.569% today, up 0.046 percentage points. The 30-year refinancing rate is also higher, rising to 3.761%. Almost all other loan categories are also seeing higher rates.

Competitive rates are still available for borrowers with strong credit who are planning to buy a home or refinance an existing home loan.

  • The most recent 30-year mortgage rate is 3.569%. ⇑
  • The most recent 15-year mortgage rate is 2.542%. ⇑
  • The latest rate on 1/5 ARM is 2.16%. ⇑
  • The latest rate on 7/1 ARM is 2.993%. ⇑
  • The latest rate on 1/10 arm is 3.209%. ⇑

The money daily mortgage rates reflect what a borrower with a 20% down payment and a credit score of 700 — roughly the national average score — would pay if they applied for a home loan now. Prices for each day are based on the average rate of 8000 lenders submitted to applicants on the previous business day. Freddie Mac’s weekly rates will generally be lower, as they measure the rates offered to borrowers with higher credit scores.

Flat Rates on a 30-Year Mortgage Today

  • The 30-year rate is 3.569%.
  • This is one day in awrinkle 0.046 percentage point.
  • This is one month in awrinkle 0.022 percentage points.

A 30-year mortgage is the most popular loan among borrowers thanks to its fixed interest rates and consistent monthly payments. Long repayment also provides an advantage as it results in more affordable monthly payments compared to a short term loan. However, the interest rate is usually higher, so you will pay more for the loan over time.

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Average Mortgage Rates

Data based on US mortgage loans closed on December 20, 2021

loan type December 20 last week change
15 years traditional fixed 2.54% 2.58% 0.04%
30 years traditional fixed 3.57% 3.59% 0.02%
Rate 7/1 ARM 2.99% 3.27% 0.28%
Rate 1/10 ARM 3.21% 3.38% 0.17%

Your actual price may vary

15 years fixed exchange rate Today’s Mortgage Rates

  • The 15-year rate is 2.542%.
  • This is one day in awrinkle 0.023 percentage point.
  • This is one month Fromwrinkle 0.095 percentage points.

A shorter 15-year fixed-rate mortgage term means your monthly payments will be higher than those on a 30-year equivalent loan. However, the interest rate is usually lower, which means that you can save money over the full term of the loan if you can afford those higher payments.

Mortgage rates are adjustable today

  • The latest rate on 1/5 ARM is 2.16%. ⇑
  • The latest rate on 7/1 ARM is 2.993%. ⇑
  • The latest rate on 1/10 arm is 3.209%. ⇑

Adjustable rate mortgages will have an introductory period with a fixed rate of interest which usually have a very low interest rate. However, once the fixed rate period expires, the rate will become adjustable and change periodically. For example, a 5/1 ARM rate is fixed for five years and then reset annually. This type of loan may be a good option if you do not plan to keep the home for the entire term of the loan. Once the price becomes adjustable, there can be a significant increase.

Current Mortgage Rates: Mega Loan Rates, FHA, and FHA

Average rates for FHA loans, FHA loans, and jumbo loans are:

  • The 30-year FHA mortgage rate is 3.262%. ⇑
  • The 30-year mortgage rate is 3.353%. ⇑
  • The 30-year mortgage rate is 3.494%. ⇑

Current Mortgage Refinance Rates

The average refinancing rates for 30-year loans, 15-year loans, and ARM are:

  • The refinancing rate on the 30-year fixed rate refinancing is 3.761%. ⇑
  • The refinancing rate on the 15-year fixed rate refinancing is 2.654%. ⇑
  • The refinancing rate on 5/1 ARM is 2.429%. ⇑
  • The refinancing rate on arm 7/1 is 3.159%. ⇓
  • The refinancing rate on 1/10 ARM is 3.844%. ⇑
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Average Mortgage Refinance Rates

Data based on US mortgage loans closed on December 20, 2021

loan type December 20 last week change
15 years traditional fixed 2.65% 2.69% 0.04%
30 years traditional fixed 3.76% 3.78% 0.02%
Rate 7/1 ARM 3.16% 3.08% 0.08%
Rate 1/10 ARM 3.84% 3.91% 0.07%

Your actual price may vary

Where are mortgage rates headed this year?

Mortgage rates have fallen through 2020. Millions of homeowners have responded to lower mortgage rates by refinancing existing loans and taking out new ones. Many people bought homes that they might not have been able to afford if the prices were higher. In January 2021, prices fell briefly to all-time lows, but trended slightly higher during the rest of the year.

Looking ahead, experts believe interest rates will rise further in 2022, but also modestly. Factors that can affect rates include continued economic improvement and further gains in the labor market. The Federal Reserve has also begun to scale back its purchase of mortgage-backed securities and has announced that it expects to raise the federal funds rate three times in 2022 to combat rising inflation.

While mortgage rates are likely to rise, experts say the increase won’t happen overnight and won’t be a dramatic jump. Prices should remain near historically low levels during the first half of the year, and rise slightly later in the year. Even with interest rates rising, it will still be a good time to finance a new home or refinance a mortgage.

Factors that affect mortgage rates include:

  • Federal Reserve. The Fed took quick action when the pandemic hit the US in March of 2020. The Fed announced plans to keep money moving in the economy by lowering the Fed’s short-term fund rate to between 0% and 0.25%, a low level. as they go. The central bank also pledged to buy mortgage-backed securities and Treasuries, which support the housing finance market, but it began tapering those purchases in November.
  • 10-year treasury bonds. Mortgage rates are moving in leaps and bounds with 10-year government treasury bond yields. Returns fell below 1% for the first time in March 2020 and have been rising ever since. On average, there is usually a 1.8-point “difference” between Treasury yields and benchmark mortgage rates.
  • the broader economy. Unemployment rates and changes in GDP are important indicators of the overall health of an economy. When employment and GDP growth are low, it means the economy is weak, which can lead to lower interest rates. Thanks to the pandemic, unemployment levels reached an all-time high early last year and have yet to recover. GDP took a hit as well, and while it rebounded somewhat, there is still plenty of room for improvement.

Tips for getting the lowest possible mortgage rate

There is no universal mortgage rate that all borrowers get. Qualifying for the lowest mortgage rates takes a little work and will depend on both personal financial factors and market conditions.

Check your credit score and credit report. Mistakes or other red flags may lower your credit score. The borrowers with the highest credit scores will get the best rates, so checking your credit report before beginning the home search process is key. Taking steps to fix mistakes will help increase your score. If you have high credit card balances, paying them off can also provide a quick payment.

Save money for a big down payment. This will lower the loan-to-value ratio, which means the amount of home price the lender has to finance. A lower permanent value of the loan usually translates to a lower mortgage rate. Lenders also want to see money that has been held in an account for at least 60 days. It tells the lender that you have the money to finance the purchase of the home.

Shop for the best price. Do not accept the first interest rate that the lender offers you. Check with at least three different lenders to see who offers the lowest interest. Also consider different types of lenders, such as credit unions and online lenders as well as traditional banks.

Also. Take your time to learn about the different types of loans. While a 30-year mortgage is the most common type of mortgage, consider a short-term loan such as a 15-year loan or adjustable mortgage. These types of loans often come at a lower rate than a traditional 30-year mortgage. Compare everyone’s costs to see which best suits your needs and financial situation. Government loans—such as those backed by the Federal Housing Authority, the Department of Veterans Affairs, and the Department of Agriculture—can be more affordable options for those who qualify.

Finally, fix your price. Locking in your rate once you’ve found the right rate, loan product, and lender will help ensure that your mortgage rate doesn’t increase before the loan closes.

Our Mortgage Rate Methodology

Daily Cash Mortgage rates show the average rate offered by more than 8000 lenders across the United States, with the latest working day rates available. Today, we’re showing rates for Monday, December 20, 2021. Our rates reflect what a typical borrower with a credit score of 700 would expect to pay for a home-purchase loan right now. These prices are shown to people who have placed at least 20% and include discount points.

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