Mortgage rates for Jan. 11, 2022: Rate upswing continues this week
If you’ve been following our mortgage rate updates each week, you no doubt noticed the recent trend of rising rates. Last week saw a steady increase across multiple loan types and today is no different. Guaranteed Rate interest rates* have gone up for most loan types today, Jan. 11, 2022.
There’s a lot of speculation out there attempting to nail down a particular reason for the recent rate swing. Popular explanations range from the Fed ramping up tapering activity to bond markets responding to the possibility that COVID could reach endemic status sooner than anticipated.
Regardless why rates continue to rise, anyone who’s held off on a refinance — whether it’s a traditional refi or a cash-out refi — should think long and hard about potentially locking in a mortgage rate. If rates go up from here, waiting to lock in your rate could lead to higher mortgage payments.
30-year fixed rate
Mortgage rates for the ever-popular 30-year fixed rate loan have actually stayed flat day over day (DOD). However, interest rates are up both week over week (WOW) and month over month (MOM). If you meet the borrower profile details listed below, your mortgage payment would be $1,347.13.*
- Today’s rate: 3.500%
- DOD change: 0
- WOW change: up 25 basis points**
- MOM change: up 25 basis points
- Today’s APR: 3.597%
- DOD change: 0
- WOW change: up 25.2 basis points
- MOM change: up 25.2 basis points
15-year fixed rate
Things aren’t quite as rosy with 15-year fixed rate mortgages. Rates have increased on a DOD, WOW and MOM basis, reaching their highest point since we started publishing rate updates. As of now, you would pay $2,035.86 on your mortgage each month.*
- Today’s rate: 2.750%
- DOD change: up 12.5 basis points
- WOW change: up 25 basis points
- MOM change: up 37.5 basis points
- Today’s APR: 2.918%
- DOD change: up 12.6 basis points
- WOW change: up 25.2 basis points
- MOM change: up 37.9 basis points
FHA 30-year fixed rate
Government loans have been hit hardest by today’s rate increase. Interest rates on FHA 30-year fixed rate mortgages have gone up by a larger margin than any other major loan type. Given the current loan conditions, your mortgage payment would be $1,389.15.*
- Today’s rate: 3.750%
- DOD change: up 25 basis points
- WOW change: up 37.5 basis points
- MOM change: up 50 basis points
- Today’s APR: 4.552%
- DOD change: up 25.8 basis points
- WOW change: up 38.7 basis points
- MOM change: up 51.5 basis points
5-year ARM
Adjustable rate mortgages (ARMs) have been a bit of a mixed bag today. Looking at 5-year ARM options, interest rates increased from where they stood last week, but not to the same degree as some fixed rate options. Right now, you would spend $1,326.29 on your monthly mortgage installment.*
- Today’s rate: 3.375%
- WOW change: up 12.5 basis points
- Today’s APR: 3.060%
- WOW change: up 4.4 basis points
7-year ARM
Compared with the rate swings seen in other loan types, rates for 7-year ARM loans have been downright placid today. Interest rates are matching last week’s position, making 7-year ARMs a bit of an outlier. With our current loan terms, your monthly mortgage payment would be $1,368.15.*
- Today’s rate: 3.625%
- WOW change: 0
- Today’s APR: 3.251%
- WOW change: 0
10-year ARM
The 10-year ARM saw more rate volatility today than any other major loan type. While rates dropped day over day (and month over month, for that matter), they’ve actually gone up from where they stood just a week ago. Using our current loan terms, you’d pay $1,326.29 on your 10-year ARM each month.*
- Today’s rate: 3.375%
- DOD change: down 25 basis points
- WOW change: up 12.5 basis points
- MOM change: down 12.5 basis points
- Today’s APR: 3.225%
- DOD change: down 15.7 basis points
- WOW change: up 7.8 basis points
- MOM change: down 7.8 basis points
Today’s takeaway
Rates increased for most major loan types today, reflecting an ongoing trend within the mortgage industry. While it’s tempting to hold off on a refi given the current circumstances and see if rates dip back down, there’s no guarantee that will happen. Mortgage rates could very well continue to climb in the coming weeks. Be sure to consult a mortgage expert to help decide if you should apply for a refi today or wait a bit to lock in your rate.
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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