Today’s mortgage rates continue to climb | February 9, 2022


Interest rates are on the rise again. The average rate for a 30-year fixed-rate purchase loan rose to 4.23%, up 0.018 percentage points from yesterday. The rate on a 15-year fixed rate mortgage rose to 3.295%, while the 5/1 variable rate mortgage rose to 2.873%.

Homeowners interested in refinancing their current home loan should also expect to see higher rates. The rate on a 30-year refi loan averages 4.299%, while the average rate on a 15-year refi is 3.379%. The 5/1 ARM averages 2.921%.

  • The last rate on a 30-year fixed rate mortgage is 4.23%.
  • The final rate on a 15-year fixed rate mortgage is 3.295%. ⇑
  • The latest rate on a 5/1 ARM is 2.873%. ⇑
  • The latest rate on a 7/1 ARM is 3.151%. ⇑
  • The latest rate on a 10/1 ARM is 3.227%. ⇑

Money’s daily mortgage rates reflect what a borrower with a 20% down payment and a credit score of 700 — roughly the national average score — could pay if he or she applied for a home loan right now. Each day’s rates are based on the average rate that 8,000 lenders offered applicants 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.

Are you looking for a loan? Check out Money’s lists of top mortgage lenders and top refinance lenders.

Today’s 30-Year Fixed Rate Mortgage Rates

  • The 30-year rate is 4.23%.
  • It’s a day infold by 0.018 percentage points.
  • It’s a month to augment by 0.256 percentage points.

The 30-year fixed rate mortgage is the most common home loan in America. Borrowers appreciate its predictable interest, long repayment term and relatively affordable monthly payments. However, it is the more expensive option in the long term, since the interest rate is higher compared to a shorter term loan and you pay it longer.

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Average mortgage rates

Data based on US mortgages closed on February 8, 2022

Type of loan February 8 Last week Change
15-year fixed conventional 3.3% 3.1% 0.2%
30-year fixed conventional 4.23% 4.1% 0.13%
ARM rate 7/1 3.15% 3.0% 0.15%
ARM rate 10/1 3.23% 3.07% 0.16%

Your actual rate may vary

15 years today fixed rate mortgage rates

  • The 15-year rate is 3.295%.
  • It’s a day infold by 0.056 percentage points.
  • It’s a month infold by 0.376 percentage points.

The lower interest rate and shorter payback period make the 15-year fixed rate mortgage less expensive over time compared to a longer term loan. The monthly payments will however be higher, so you need to make sure that you can afford higher monthly payments if you opt for this type of loan.

The latest rates of adjustable rate mortgages

  • The latest rate on a 5/1 ARM is 2.873%. ⇑
  • The latest rate on a 7/1 ARM is 3.151%. ⇑
  • The latest rate on a 10/1 ARM is 3.227%. ⇑

The low introductory interest rate of an adjustable rate mortgage is attractive to some borrowers who don’t plan to keep their home for the long term. The rate will initially be fixed and then become variable, changing periodically. For example, a 5/1 ARM will have a fixed rate for five years before starting to change each year. If you are considering this type of loan, keep in mind that the interest rate may increase once it becomes adjustable and you may need to consider loan refinancing.

The Latest VA, FHA, and Jumbo Loan Rates

The average rates for FHA, VA, and jumbo loans are:

  • The rate on a 30-year FHA mortgage is 4.077%. ⇑
  • The rate for a 30-year VA mortgage is 4.4%. ⇑
  • The rate for a 30-year jumbo mortgage is 3.977%. ⇑

The latest mortgage refinance rates

The average refinance rates for 30-year loans, 15-year loans and ARMs are:

  • The refinance rate on a 30-year fixed rate refinance is 4.299%. ⇑
  • The refinance rate on a 15-year fixed rate refinance is 3.379%. ⇑
  • The rollover rate on a 5/1 ARM is 2.921%. ⇑
  • The refinance rate on a 7/1 ARM is 3.195%. ⇑
  • The rollover rate on a 10/1 ARM is 3.281%. ⇑
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Average Mortgage Refinance Rates

Data based on US mortgages closed on February 8, 2022

Type of loan February 8 Last week Change
15-year fixed conventional 3.38% 3.74% 0.36%
30-year fixed conventional 4.3% 4.61% 0.31%
ARM rate 7/1 3.2% 3.24% 0.04%
ARM rate 10/1 3.28% 3.32% 0.04%

Your actual rate may vary

Where are mortgage rates going this year?

Mortgage rates have fallen through 2020. Millions of homeowners have responded to low mortgage rates by refinancing existing loans and taking out new ones. Many people bought homes they might not have been able to afford if rates were higher. In January 2021, rates briefly fell to lowest levels on record, but rose slightly for the rest of the year.

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

While mortgage rates are likely to rise, experts say the increase won’t happen overnight and it won’t be a dramatic jump. Rates are expected to remain near historic lows throughout the first half of the year, rising slightly later in the year. Even with rising rates, it will still be a good time to finance a new home or refinance a mortgage.

Factors that influence mortgage rates include:

  • The Federal Reserve. The Fed acted quickly when the pandemic hit the United States in March 2020. The Fed announced its intention to keep money flowing in the economy by lowering the Federal Fund short-term interest rate between 0% and 0.25%, which is also low as you go. The central bank also pledged to buy mortgage-backed securities and treasury bills, supporting the housing finance market, but began to scale back those purchases in November.
  • The 10-year Treasury bond. Mortgage rates keep pace with government 10-year Treasury bond yields. Yields first fell below 1% in March 2020 and have since risen. On average, there is typically a 1.8 point “spread” between Treasury yields and benchmark mortgage rates.
  • The wider economy. Unemployment rates and changes in gross domestic product are important indicators of the overall health of the economy. When employment and GDP growth are weak, it means the economy is weak, which can lower interest rates. Thanks to the pandemic, unemployment levels reached historic highs early last year and have yet to recover. GDP has also taken a hit, and although it has 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 receive. Qualifying for the lowest mortgage rates takes some work and will depend on both personal financial factors and market conditions.

Check your credit score and your credit report. Mistakes or other red flags can lower your credit score. Borrowers with the highest credit scores are the ones who will get the best rates, so it’s essential to check your credit report before you begin the home hunting process. Taking steps to correct mistakes will help increase your score. If you have high credit card balances, paying them off can also give you a quick boost.

Save money for a large down payment. This will lower your loan-to-value ratio, which is the share of the house price that the lender has to finance. A lower LTV usually translates to a lower mortgage rate. Lenders also like to see money that has been saved in an account for at least 60 days. It tells the lender that you have the money to finance the home purchase.

Shop around for the best rate. Don’t settle for the first interest rate a lender offers you. Check with at least three different lenders to see who offers the lowest interest rate. Also consider different types of lenders, such as credit unions and online lenders in addition to traditional banks.

As well. take the time to learn about the different types of loans. Although the 30-year fixed rate mortgage is the most common type of mortgage, consider a shorter-term loan such as a 15-year mortgage or an adjustable rate mortgage. These types of loans often come with a lower rate than a conventional 30-year mortgage. Compare the costs of all to see which best suits your needs and financial situation. Government loans — such as those backed by the Federal Housing Authority, Department of Veterans Affairs, and Department of Agriculture — may be more affordable options for those who qualify.

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

Our mortgage rate methodology

Money’s Daily Mortgage Rates show the average rate offered by more than 8,000 lenders across the United States for which the most recent rates are available. Today we are posting rates for Tuesday, February 8, 2022. Our rates reflect what a typical borrower with a 700 credit score might expect to pay for a home loan at this time. These rates were offered to people depositing 20% ​​deposit and include discount points.

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