Mortgage Rates for April 28, 2022: Rates Inch Higher

Mortgage rates are slightly higher than last week. The average interest rate for the 30-year fixed-rate mortgage is 5.42%, while the average interest rate for a 15-year fixed-rate mortgage is 4.65%. Today, the average price for the 5/1 ARM is 3.67%.

Mortgage rates have been rising slowly since the beginning of this year and are expected to rise throughout 2022. Interest rates are now closer to 2018 levels, surpassing historic lows recorded at the height of the pandemic. However, interest rates fluctuate and can rise and fall on a daily basis due to a variety of economic factors. With interest rates expected to continue rising, now is a good time for prospective homebuyers to lock in a lower interest rate. Talking to multiple lenders can help you find the best interest rate available for your financial situation.

30-year fixed-rate mortgages

The average interest rate on 30-year fixed-rate mortgages is 5.42%, up 14 basis points from seven days ago. (One basis point equals 0.01%.) Thirty-year fixed-rate mortgages are the most common loan term. A 30-year fixed-rate mortgage typically has a higher interest rate than a 15-year fixed-rate mortgage — but also a lower monthly rate. You won’t be able to pay off your house as quickly and will pay more interest over time, but a 30-year fixed-rate mortgage is a good option if you want to minimize your monthly payments.

15-year fixed-rate mortgages

The average interest rate on a 15-year fixed-rate mortgage is 4.65%, up 20 basis points from seven days ago. Compared to a 30-year fixed-rate mortgage, a 15-year fixed-rate mortgage has a higher monthly rate with the same lending value and interest rate. But a 15-year loan is usually a better deal as long as you can afford the monthly payments. You’ll most likely get a lower interest rate and pay less interest overall because you’ll be paying off your mortgage much faster.

5/1 variable rate mortgages

A 5/1 ARM has an average rate of 3.67%. For the first five years, a 5/1 ARM typically gets you a lower interest rate than a 30-year fixed-rate mortgage. However, as the interest rate adjusts to the market interest rate, after that time you may end up paying more, as outlined in the terms of your loan. For this reason, an ARM could be a good option if you’re planning to sell or refinance your home before the rate changes. Otherwise, market shifts mean your interest rate could be significantly higher once the interest rate adjusts.

Mortgage Rate Trends

Although 2022 started with low mortgage rates, there has been a steady increase lately and rates are expected to continue rising throughout 2022. Home loan interest rates are influenced by various economic factors. A key factor is government policy set by the Federal Reserve, which in March raised interest rates for the first time since 2018 in response to record-high inflation. The Fed expects interest rates to be hiked six more times this year. So if you’re looking to buy a home in 2022, be prepared for interest rates to keep rising.

We use rates collected by Bankrate, owned by the same parent company as CNET, to track changes in these daily rates. This table summarizes the average interest rates offered by lenders across the country:

Average mortgage rates

product interest rate Last week To change
30 years fixed 5.42% 5.28% +0.14
15 years fixed 4.65% 4.45% +0.20
30 years jumbo 5.38% 5.23% +0.15
30 year refinancing 5.42% 5.25% +0.17

Prices as of April 28, 2022.

How to find the best mortgage rate

You can get a personalized mortgage rate by contacting your local mortgage agent or by using an online calculator. When looking for a mortgage, be sure to consider your current finances and goals. A number of factors – including your down payment, creditworthiness, mortgage loan value and debt-to-income ratio – affect the interest rate on your mortgage. In general, you want good credit, a higher down payment, a lower DTI, and a lower LTV to get a lower interest rate. In addition to the interest rate, factors such as closing costs, fees, discount points, and taxes can also affect the cost of your home. Make sure you compare with multiple lenders — like credit unions and online lenders, as well as local and national banks — to get a mortgage loan that’s right for you.

What is the best loan term?

When choosing a mortgage, remember to consider the loan term or payment schedule. The most commonly offered loan terms are 15 year and 30 year mortgages, although you can also find 10, 20 and 40 year mortgages. Another important distinction is between fixed rate and adjustable rate mortgages. With fixed-rate mortgages, the interest is fixed for the term of the loan. With adjustable rate mortgages, interest rates are stable for a specified number of years (usually five, seven, or 10 years), then the interest rate fluctuates annually based on the market interest rate.

One thing to consider when choosing between a fixed rate mortgage and an adjustable rate mortgage is the length of time you plan to stay in your home. Fixed-rate mortgages may be more appropriate if you plan to live in your own home for an extended period of time. While adjustable rate mortgages can offer lower interest rates up front, fixed rate mortgages are more stable over time. However, you could get a better deal with an adjustable rate mortgage if you only plan to keep your home for a few years. The best loan term depends entirely on the personal situation and goals of the individual. Therefore, when choosing a mortgage, consider what is important to you.

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