Mortgage rates for Feb. 8, 2022: 30-year loans go up, while others stay flat
If you’re in the market for a new 30-year fixed rate loan — either on a new purchase or refi — be sure to check the latest mortgage rates before making a final decision. Rate interest rates for 30-year loans went up today, Feb. 8, 2022. Other fixed rate loan types, including conventional and government-insured options, are holding steady, though.
Under these circumstances, locking or floating your mortgage rate is a day-to-day decision. It’s hard to say for certain how rates will respond to treasury bond activity, market movement and other economic drivers, so keep watching our daily rate updates for the latest news.
Market update
Financial markets around the world remain under pressure as investors contemplate the end of the Fed gravy train. Overnight, U.S. 10-year yields hit 1.958% and appear to be on target to test 2.0% soon. Higher rates and monetary tightening are triggering increased concerns that economic growth and corporate earnings will begin to fumble. Additionally, mortgage rates are increasing and mortgage-backed security (MBS) prices are falling this morning, with UMBS 2.5s down 8/32nds overnight, right at Employment Friday lows.
Data is light this week, but we do get Consumer Price Index on Friday; if the report confirms increased price pressure on consumers, expect to see the 10-year move to 2.0% (seems like it's moving there anyway). My advice is lock what you can.
— Jeremy Collett, Rate Executive Director of Capital Markets
30-year fixed rate
While other loan types haven’t experienced much rate movement today, interest rates on 30-year fixed rate home loans jumped day over day (DOD). Compared with recent positions, rates are also up week-over-week (WOW) and month over month (MOM). Right now, borrowers fitting our profile would pay $1,430.52* on a 30-year mortgage each month. It’s worth noting, though, that these loan conditions could change as soon as tomorrow morning.
- Today’s rate: 3.990%
- DOD change: up 11.5 basis points**
- WOW change: up 44 basis points
- MOM change: up 46.2 basis points
- Today’s APR: 4.110%
- DOD change: up 13.4 basis points
- WOW change: up 46.2 basis points
- MOM change: up 51.3 basis points
15-year fixed rate
While interest rates on 15-year fixed rate loans haven't changed day over day, they are up compared with last week and last month. If you locked in your rate today, your monthly mortgage payment would be $2,089.83.*
- Today’s rate: 3.125%
- DOD change: 0
- WOW change: up 25 basis points
- MOM change: up 50 basis points
- Today’s APR: 3.297%
- DOD change: 0
- WOW change: up 25.2 basis points
- MOM change: up 50.5 basis points
FHA 30-year fixed rate
It’s been a similar story with government-insured mortgages. FHA 30-year fixed rate loans are staying flat today, but interest rates have increased week over week and month over month. With these loan conditions, you would spend $1,389.35* on your mortgage each month.
- Today’s rate: 3.750%
- DOD change: 0
- WOW change: up 25 basis points
- MOM change: up 25 basis points
- Today’s APR: 4.552%
- DOD change: 0
- WOW change: up 25.8 basis points
- MOM change: up 25.8 basis points
Today’s takeaway
Mortgage rates for most major loan types haven’t budged at all today, Feb. 8, 2022. However, the one exception is the most popular mortgage option out there: 30-year fixed rate loans. With today’s rate increase on 30-year loans, you may be tempted to wait and see if rates drop back down over the next few days or weeks. Based on the market analysis provided by our own Jeremy Collett, that approach could — and we stress “could” — backfire.
In the current rate environment, you have to take your wins where you can find them. That may mean the best course of action is to lock in your mortgage rate sooner rather than later. Ready to take the next steps on a traditional or cash-out refi? Our mortgage experts can help you get started.
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 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
Jeremy Collett is Rate’s Executive Director of Capital Markets. Market Updates are designed to provide readers with a high-level yet insightful view of how economic news, events and trends affect mortgage rates and the homebuying process.
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