Mortgage rates for Feb.1, 2022: Some rates nudge upward while others hold firm
Every new day presents a new opportunity — opportunity for a rate increase, that is. Rates steadily climbed all last month, largely in response to the Fed’s plans to curtail rising inflation and discontinue the purchase of mortgage-backed securities. Earlier today, Feb. 1, 2022, a leading figure in the Federal Reserve reiterated that plan, predicting multiple rate hikes throughout the year with the first likely kicking off in March.
Speaking to Bloomberg Television, Federal Reserve Bank of Philadelphia President Patrick Harker said, “I would be supportive of a 25 basis-point increase in March. Could we do 50? Yeah. Should we? I’m a little less convinced of that right now.”
With an impending rate increase seeming all but inevitable, mortgage rates could very well follow suit. Looking at Guaranteed Rate mortgage rates today, that’s only half true. While some loan types have seen rising rates today, several major loans are holding firm. It’s as crucial as ever to watch current mortgage rate activity to spot dips and lock in your rate when lending conditions are favorable.
30-year fixed rate
Conventional fixed rate loans aren’t seeing much rate movement today. In fact, 30-year fixed rate loans haven’t experienced any day-over-day (DOD) change at all. Still, rates are up both week over week (WOW) and month over month (MOM). For homebuyers fitting our borrower profile, your monthly mortgage payment would be $1,355.52.*
- Today’s rate: 3.550%
- DOD change: 0
- WOW change: up 7.5 basis points**
- MOM change: up 30 basis points
- Today’s APR: 3.648%
- DOD change: 0
- WOW change: up 7.6 basis points
- MOM change: up 30.3 basis points
15-year fixed rate
It’s been largely the same story with 15-year fixed rate loans: No day-over-day movement, but rates have gone up when you compare week-over-week and month-over-month positions. Right now, you would spend $2,053.76* on your mortgage each month for this loan type.
- Today’s rate: 2.875%
- DOD change: 0
- WOW change: up 12.5 basis points
- MOM change: up 50 basis points
- Today’s APR: 3.045%
- DOD change: 0
- WOW change: up 12.7 basis points
- MOM change: up 50.6 basis points
FHA 30-year fixed rate
Government-insured loans haven’t fared as well as their conventional counterparts. Rates on FHA 30-year fixed rate loans are higher today than they were yesterday, last week or last month. With these financing terms, your monthly payment would be $1,347.13.*
- Today’s rate: 3.5%
- DOD change: up 12.5 basis points
- WOW change: up 12.5 basis points
- MOM change: up 37.5 basis points
- Today’s APR: 4.294%
- DOD change: up 12.9 basis points
- WOW change: up 12.9 basis points
- MOM change: up 38.6 basis points
7-year ARM
It’s been a bit of a mixed bag for adjustable rate mortgages (ARMs). Let’s start with the bright spot: Rates on 7-year ARMs are holding firm day over day. That being said, interest rates for this loan type are still up fairly significantly week over week and month over month. If you locked in your rate today, you’d spend $1,389.35* on your mortgage each month.
- Today’s rate: 3.750%
- DOD change: 0
- WOW change: up 37.5 basis points
- MOM change: up 62.5 basis points
- Today’s APR: 3.311%
- DOD change: 0
- WOW change: up 17.9 basis points
- MOM change: up 29.6 basis points
10-year ARM
Of all major loan types, 10-year ARMs had by far the worst day, recording the largest day-over-day increase. Interest rates for 10-year ARMs are also significantly higher now than were a month ago. Even compared with last week, mortgage rates have gone up quite a bit. With these loan terms, you’d be looking at a $1,389.15* monthly mortgage payment.
- Today’s rate: 3.750%
- DOD change: up 37.5 basis points
- WOW change: up 50 basis points
- MOM change: up 75 basis points
- Today’s APR: 3.461%
- DOD change: up 23.6 basis points
- WOW change: up 31.4 basis points
- MOM change: up 46.8 basis points
Today’s takeaway
Interest rates for some loan types stayed flat today, Feb. 1, 2022, while others went up a fair amount. Given the circumstances with the Fed’s commitment to a forthcoming rate hike, that may sound like relatively good news, all things considered. Note, though, that rates for every major loan type are higher today than they were a month or even a week ago.
We can’t say for sure where rates will go from here, but when no movement is the best possible news, that’s pretty telling. If you’re ready to lock in your rate on a mortgage refinance or new home purchase, get in touch with one of our mortgage specialists to help you hammer out your financing terms.
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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