Mortgage rates for Dec. 16, 2021: Rates hold their ground
Guaranteed Rate mortgage rates are holding strong today, Dec. 16, 2021, in the face of major market developments. Many industry analysts expected rates to rise in response to yesterday’s Fed announcement that it would increase the pace of bond tapering. That could still very well happen this week, but at least for today, rate movement has been minimal.
There’s no telling how long interest rates will stay this resilient, especially with the Fed’s accelerated tapering plan. If you’re thinking of jumping on a cash-out refi, now could be a good time to act before rates get any higher.
30-year fixed rate
Movement on 30-year fixed rate mortgages has been virtually non-existent*, at least day-over-day (DOD). Rates for this type of loan are still down week-over-week (WOW) and month-over-month (MOM) — an impressive state of affairs considering all the market indicators pointing toward an eventual increase. Borrowers fitting our profile conditions would pay $1,285.13 each month on a 30-year fixed rate home loan.
- Today’s rate: 3.125%
- DOD change: 0
- WOW change: down 12.5 basis points**
- MOM change: down 12.5 basis points
- Today’s APR: 3.219%
- DOD change: 0
- WOW change: down 12.6 basis points
- MOM change: down 12.6 basis points
15-year fixed rate
Rates on 15-year fixed rate home loans have been pretty resilient, showing no DOD or WOW change today. Despite recent developments in the bond market, mortgage rates for this loan type are still down from where they were a month ago. With our term conditions, your monthly mortgage payment would be $1,982.76.
- Today’s rate: 2.375%
- DOD change: 0
- WOW change: 0
- MOM change: down 12.5 basis points
- Today’s APR: 2.539%
- DOD change: 0
- WOW change: 0
- MOM change: down 12.7 basis points
FHA 30-year fixed rate
While conventional fixed rate mortgages saw some movement, either week-over-week or month-over-month, rates on FHA 30-year fixed rate loans didn’t budge at all. Today’s rates are the same as they were a week and even a month ago. Right now, the mortgage payment for someone fitting our borrower profile would be $1,305.62.
- Today’s rate: 3.250%
- DOD change: 0
- WOW change: 0
- MOM change: 0
- Today’s APR: 4.037%
- DOD change: 0
- WOW change: 0
- MOM change: 0
10-year ARM
Activity on adjustable rate mortgages (ARM) has also remained flat. While 10-year ARM rates have dipped a bit week-over-week and month-over-month, they haven’t changed at all day-over-day. With these loan terms and conditions, you could expect to pay $1,326.29 on your mortgage each month.
- Today’s rate: 3.375%
- DOD change: 0
- WOW change: down 12.5 basis points
- MOM change: down 12.5 basis points
- Today’s APR: 3.225%
- DOD change: 0
- WOW change: down 7.8 basis points
- MOM change: down 7.8 basis points
Today’s takeaway
Across the board, rates remained strong, holding their position from yesterday. That lack of day-over-day movement is something of a surprise, given the Fed’s revamped tapering strategy. There’s no telling how long these mortgage conditions will last, though. Interest rates could — and some might argue, will — increase in the coming weeks and months.
If you’re considering using a cash-out refi this winter to finance home improvements or renovations, you may not want to wait too long to lock in your rate. Reach out to a qualified mortgage expert to see what your options look like.
Disclaimer
*Above scenarios assume a first lien position, 40 day rate lock on a primary residence and are subject to change without notice. Subject to underwriting guidelines and applicant’s credit profile. The actual interest rate, APR and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by Lender. Contact Guaranteed Rate for more information and up to date rates.
**Basis points measure the percentage change on interest rates. One basis point represents a 0.01% shift.
Interest rates are based on a borrower profile fitting the following criteria:
- Zip code: 60031
- Home type: Single-family house
- Purchase price: $375,000
- Down payment: 20% ($75,000)
- Mortgage balance: $300,000
- FICO score: 740+
- Military member: No
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