The average rate for a 30-year fixed-rate mortgage fell to 5.362%, down 0.088 percentage points. Rates for all other loan categories are also lower today.

  • The final rate on a 30-year fixed rate mortgage is 5.362%. ⇓
  • The last rate on a 15-year fixed rate mortgage is 4.319%. ⇓
  • The last rate on a 5/1 ARM is 3.885%. ⇓
  • The latest rate on a 7/1 ARM is 4.163%. ⇓
  • The latest rate on a 10/1 ARM is 4.24%. ⇓

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 weekly rates will generally be lower since they measure the rates offered to borrowers with higher credit ratings.

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 5.362%.
  • It’s a day offold by 0.088 percentage points.
  • It’s a month to augment by 0.905 percentage points.

Most borrowers opt for a 30-year fixed rate mortgage. The predictable interest rate provides long-term stability while the long payback period means monthly payments are relatively low. However, the interest rate will be higher than that of a shorter-term loan and it is paid for longer, making the 30-year option a more expensive option over time.

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Average mortgage rates

Data based on US mortgages closed April 4, 2022

Type of loan April 4 Last week Change
15-year fixed conventional 4.32% 4.27% 0.05%
30-year fixed conventional 5.36% 5.38% 0.02%
ARM rate 7/1 4.16% 4.26% 0.1%
ARM rate 10/1 4.24% 4.37% 0.13%

Your actual rate may vary

Today’s 15-Year Fixed Rate Mortgage Rates

  • The rate over 15 years is 4.319%.
  • It’s a day offold by 0.02 percentage points.
  • That’s a one-month increase of 0.866 percentage points.

The lower interest rate and shorter term of the 15-year fixed rate mortgage makes it less expensive in the long run. However, the monthly payments will be much higher than on an equivalent size loan over 30 years since the balance must be paid off in half the time.

Use a mortgage calculator to determine which option is best for you.

The latest rates of adjustable rate mortgages

  • The last rate on a 5/1 ARM is 3.885%. ⇓
  • The latest rate on a 7/1 ARM is 4.163%. ⇓
  • The latest rate on a 10/1 ARM is 4.24%. ⇓

Instead of a fixed rate loan, you can opt for an adjustable rate mortgage. An ARM will start with a low, fixed rate that will eventually become adjustable and reset at established intervals. The rate on a 5/1 ARM, for example, is fixed for five years and then begins to reset each year. An ARM might be a good option if you don’t plan on keeping the house long term. If you stay beyond the fixed period, however, the interest rate could increase significantly once it begins to reset.

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 5.303%. ⇓
  • The rate for a 30-year VA mortgage is 5.237%. ⇓
  • The rate for a 30-year jumbo mortgage is 4.603%. ⇔

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 5.471%. ⇓
  • The refinance rate on a 15-year fixed rate refinance is 4.447%. ⇓
  • The rollover rate on a 5/1 ARM is 3.935%. ⇓
  • The rollover rate on a 7/1 ARM is 4.208%. ⇓
  • The rollover rate on a 10/1 ARM is 4.283%. ⇓
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Average Mortgage Refinance Rates

Data based on US mortgages closed April 4, 2022

Type of loan April 4 Last week Change
15-year fixed conventional 4.45% 4.39% 0.06%
30-year fixed conventional 5.47% 5.47% 0.0%
ARM rate 7/1 4.21% 4.32% 0.11%
ARM rate 10/1 4.28% 4.45% 0.17%

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 also began to scale back its purchases of mortgage-backed securities and raised the federal funds rate for the first time in March to combat rising inflation. The Fed has signaled that six more hikes are likely this year.

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.

Also, 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 over 8,000 lenders across the United States, with the most recent business day rates available. Today we’re posting rates for Monday, April 4, 2022. Our rates reflect what a typical borrower with a credit score of 700 might expect to pay for a home loan right now. These rates were offered to people depositing 20% ​​deposit and include discount points.

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