Mortgage rates for Dec. 30, 2021: Rates mostly hold firm through the holidays
We often associate New Year’s with change and growth, but that’s not the case at all with today’s mortgage rates. Guaranteed Rate’s interest rates for Dec. 30, 2021 stayed mostly flat this week: only one major loan type has seen any kind of day-over-day (DOD) rate movement. Fixed rate loans have displayed the least volatility on a week-over-week (WOW) and month-over-month (MOM) basis — with 30-year loans being the lone exception. In comparison, adjustable rate mortgages (ARMs) are a bit more active on that front.
What does that mean for anyone in the market for a new house or mortgage refinance? It’s too soon to say for sure, but there could be more volatility as we head into the new year. Keep an eye on current mortgage rates to get a sense of overall trends in this space.
30-year fixed rate
While the DOD rate movement has been nonexistent across every other loan type today, 30-year fixed rate loans have been another story. Rates are up day over day, week over week and month over month. If you fit our borrower profile, you could expect to pay $1,285.13 each month on your home loan.
- Today’s rate: 3.250%
- DOD change: up 12.5 basis points
- WOW change: up 12.5 basis points
- MOM change: up 12 basis points**
- Today’s APR: 3.345%
- DOD change: up 12.6 basis points
- WOW change: up 12.6 basis points
- MOM change: up 12.5 basis points
15-year fixed rate
The situation isn’t much different with 15-year fixed rate loans, although rates are up week over week. Even with that WOW increase, rates for this loan type have dipped slightly from last month. As of now, your monthly mortgage payment would be $1,982.76.
- Today’s rate: 2.375%
- DOD change: 0
- WOW change: up 12.5 basis points
- MOM change: down 0.5 basis points
- Today’s APR: 2.539%
- DOD change: 0
- WOW change: 0
- MOM change: down 0.1 basis points
FHA 30-year fixed rate
On the government-backed loan front, FHA 30-year fixed rate mortgages are holding steady both day over day and week over week. It’s a different story month over month, though: Rates for this loan type are up a bit in that department. With these loan conditions, you would pay $1,285.13 on your mortgage each month.
- Today’s rate: 3.125%
- DOD change: 0
- WOW change: 0
- MOM change: up 12.5 basis points
- Today’s APR: 3.908%
- DOD change: 0
- WOW change: 0
- MOM change: up 12.8 basis points
5-year ARM
Like we said above, ARM rates have been a touch more volatile this week. While rates on 5-year ARMs are flat day over day, they’re down significantly from a month ago. Even compared with last week, 5-year ARM rates have decreased. If you’re considering this type of loan for a cash-out refi, you may not want to wait too long. Locking in your rate today with these loan terms would give you a $1,285.13 mortgage payment.
- Today’s rate: 3.125%
- DOD change: 0
- WOW change: down 12.5 basis points
- MOM change: down 50.5 basis points
- Today’s APR: 2.927%
- DOD change: 0
- WOW change: down 4.4 basis points
- MOM change: down 17.8 basis points
7-year ARM
Rates on 7-year ARM loans have experienced arguably the most activity this week. True, rates are flat day over day, but they’ve increased a bit week over week. Despite that uptick, 7-year ARM rates are actually down compared to last month. As of today, your monthly mortgage payment on a 7-year ARM would be $1,285.13.
- Today’s rate: 3.125%
- DOD change: 0
- WOW change: up 12.5 basis points
- MOM change: down 12.5 basis points
- Today’s APR: 3.015%
- DOD change: 0
- WOW change: up 5.8 basis points
- MOM change: down 5.5 basis points
10-year ARM
Among all major ARM options, rates on 10-year ARM loans have fluctuated the least. Interest rates for this loan type haven’t changed day over day or month over month. Having said that, 10-year ARM rates have risen week over week. With the current loan terms, you would pay $1,264.81 on your mortgage each month.
- Today’s rate: 3.000%
- DOD change: 0
- WOW change: up 12.5 basis points
- MOM change: 0
- Today’s APR: 2.993%
- DOD change: 0
- WOW change: up 7.6 basis points
- MOM change: up 0.3 basis points
Today’s takeaway
Rates have held remarkably steady throughout the holidays — for the most part. Every major loan type but one has stayed flat today, with the only other recorded changes happening on a week-over-week or month-over-month basis. That doesn’t mean this period of relative inactivity will necessarily last much longer, though.
It’s difficult to say if rates will go up or down from here, but you shouldn’t sleep on favorable financing conditions. Applying for a refinance — or cash-out refi, if you’re looking to tap into your home equity — when rates are still hovering around historic lows could be a good long-term move. Be sure to consult a mortgage refinance specialist who can help you make the best decision for your circumstances.
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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