Mortgages

Mortgage rates today, February 3, 2022 | Rates pushed higher

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Looking at mortgage rates today, a variety of preeminent rates boasted increases. The averages of 30-year fixed and 15-year fixed mortgages increased. We also saw average rate inflation on 5/1 adjustable rate mortgages (ARMs).

Take a look at today’s rates:

Mortgage Rate Forecast: Where Are Mortgage Rates Headed In 2022?

This year began with mortgage rates rising almost to pre-pandemic levels. Inflation and a growing economy are two reasons rates have risen. However, the threat of Omicron and other variants has the potential to silence rising mortgage rates in the future. Mortgage rates are expected to rise in 2022, and the Federal Reserve’s decision to reduce its bond purchases will contribute to that.

What the Mortgage Rate Forecast Means for You

As long as it makes sense for you to buy a home right now, current mortgage rate trends shouldn’t derail those plans. However, higher mortgage rates will increase the cost of buying a home and affect how much home you can afford.

The 2022 real estate market is forecast to be a bit more reasonable. Although the market is expected to cool off a bit, it will still be strong for sellers. In general, experts believe that house prices will continue to rise in 2022, but at a slower pace. And headline rates should still remain historically favorable.

Pay attention to loan fees

If you take out a home loan, your decision should take into account the closing costs of the loan. Closing costs can range from 3-6% of the loan amount, including origination fees, prepaid interest, and property taxes. One way to lower your out-of-pocket costs is to accept a higher interest rate in exchange for credit from the lender. . The strategy can save you money in the short term, so it’s worth considering if you plan to sell or refinance your home in five to eight years.

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Looking at Today’s Mortgage Refinance Rates

Refinancing just got a little more expensive today as the average rates on 30-year fixed and 15-year fixed refinance mortgages increased. If you’ve been considering a 10-year refinance loan, know that average rates have also increased.

The average refinance rates are as follows:

Check the mortgage rates that adapt to your different needs.

30 Year Fixed Rate Mortgage Rates

The median interest rate for a standard 30-year fixed mortgage is 3.77%, up 4 basis points from last week.

15-year mortgage rates

The median rate for a 15-year fixed mortgage is 3.15%, which represents an increase of 6 basis points from the same period last week.

The monthly payment on a 15-year fixed-rate mortgage will be much higher. Therefore, it would be easier to find room in your budget for the monthly payment of a 30-year loan. However, 15-year loans have some hefty benefits: You’ll pay thousands of dollars less in interest, and you’ll pay off your loan much sooner.

Mortgage Rates 5/1 ARM

A 5/1 ARM has an average rate of 2.84%, which is an increase of 4 basis points compared to a week ago.

An adjustable rate mortgage is ideal for people who will refinance or sell before the rate changes. If that’s not the case, your interest rates could end up notably higher after a rate adjusts.

For the first five years, a 5/1 ARM will generally have a lower interest rate compared to a 30-year fixed mortgage. Keep in mind that your rate could go higher and your payment could grow by hundreds of dollars a month.

How We Determine Mortgage Rates

To get an idea of ​​where the mortgage rate may move, we rely on information collected by Bankrate, which is owned by the same parent company as NextAdvisor. The daily rate survey focuses on mortgages where the borrower has a FICO score of more than 740, an LTV of 80% or less, and the home is owner-occupied.

The following table compares average rates today to what they were a week ago and is based on information provided to Bankrate by lenders across the country:

Rates in force as of February 3, 2022.

Frequently Asked Questions (FAQ) about mortgage rates:

How to qualify for the lowest mortgage rate

Shopping for a mortgage is one of the best ways to qualify for the lowest mortgage interest rate.

The mortgage rate you’ll qualify for depends on a number of factors that lenders consider when assessing the likelihood that you’ll be able to afford a long-term mortgage. Your credit score influences the decision. And your loan-to-value (LTV) ratio matters, too, so having a more substantial down payment is better for your interest rate.

But lenders will assess your situation differently. Therefore, you may submit the same documentation to three different banks and discover that none of the mortgage rates and fees they offer you are the same.

Is it a good idea to lock in my mortgage rate right now?

Mortgage rates go up and down daily and it is impossible to time the market. So locking in your interest rate now is a good idea because rates are generally historically favorable.

A rate lock will only last for a set period of time, usually 30-60 days. If you run into a snag at closing and it looks like your fixed rate will expire, you should talk to your lender. You may be able to extend the rate lock, however you may be required to pay a fee for that privilege.