Mortgage rates for Jan. 4, 2022: New year, new rate increase
We’re only a few days into the new year, but mortgage rates seem to be trending upward today, Jan. 4, 2022. Looking closer at Rate interest rates*, every major loan type has seen a day-over-day (DOD) and week-over-week (WOW) rate increase, and many are up month over month (MOM) as well.
Unlike some other recent rate increases, there isn’t a specific precipitating event to point to here — no Fed announcement or major economic development to explain the uptick. Is today’s rate swing a sign of things to come? It’s too soon to tell. Be sure to stay on top of current mortgage rates if you’re planning to refinance your mortgage or buy a new home in the coming weeks and months. That way, you’ll be in a better position to lock in your rate at the right time.
30-year fixed rate
First, the good news: Interest rates on 30-year fixed rate loans haven’t budged from where they were a month ago. The bad news: Rates are up both day over day and week over week. Using our borrower profile, your monthly mortgage payment would be $1,305.62.
- Today’s rate: 3.250%
- DOD change: up 12.5 basis points**
- WOW change: up 12.5 basis points
- MOM change: 0
- Today’s APR: 3.345%
- DOD change: up 12.6 basis points
- WOW change: up 12.6 basis points
- MOM change: down 0.5 basis points
15-year fixed rate
Looking at 15-year fixed rate loans, rates have increased by every metric today. Day over day, week over week, month over month — interest rates for this loan type are up by the same number of basis points. With the current loan terms, you’d spend $2000.37 on your mortgage each month.
- Today’s rate: 2.500%
- DOD change: up 12.5 basis points
- WOW change: up 12.5 basis points
- MOM change: up 12.5 basis points
- Today’s APR: 2.666%
- DOD change: up 12.7 basis points
- WOW change: up 12.7 basis points
- MOM change: up 12.7 basis points
FHA 30-year fixed rate
While conventional fixed rate loans have seen moderate increases today, interest rates on FHA 30-year fixed rate mortgages have gone up fairly significantly. Right now, your mortgage payment for this loan type would be $1,326.29 a month.
- Today’s rate: 3.375%
- DOD change: up 25 basis points
- WOW change: up 25 basis points
- MOM change: up 12.5 basis points
- Today’s APR: 4.165%
- DOD change: up 25.7 basis points
- WOW change: up 25.7 basis points
- MOM change: up 12.5 basis points
5-year ARM
Across the board, adjustable rate mortgage (ARM) loans have experienced just as much — if not more — volatility as fixed rate options. Today’s 5-year ARM rates are on the lower end of the spectrum in that regard, with a comparatively mild increase. Still, any uptick in your mortgage rate, no matter how small, can impact your housing costs. In this case, you’d be looking at a mortgage payment of $1,305.62.
- Today’s rate: 3.250%
- DOD change: up 12.5 basis points
- WOW change: up 25 basis points
- Today’s APR: 3.016%
- DOD change: up 4.4 basis points
- WOW change: up 8.8 basis points
7-year ARM
The biggest rate swings today comes from the 7-year ARM — and it’s not even remotely close. Mortgage rates for this loan type are up significantly from where they stood just a week ago. Under these financing conditions, your mortgage payment would be $1,368.15.
- Today’s rate: 3.625%
- DOD change: up 25 basis points
- WOW change: up 62.5 basis points
- MOM change: up 12.5 basis points
- Today’s APR: 3.251%
- DOD change: up 11.9 basis points
- WOW change: up 29.4 basis points
- MOM change: up 6.1 basis points
10-year ARM
From a day-over-day and week-over-week perspective, 10-year ARM rates have landed somewhere in between 5-year and 7-year ARM loans. Having said that, there actually hasn’t been any month-over-month rate movement for this particular loan type. That just speaks to how quickly interest rate conditions can change in the mortgage industry. As of today, your monthly mortgage payment would be $1,305.62.
- Today’s rate: 3.250%
- DOD change: up 12.5 basis points
- WOW change: up 37.5 basis points
- MOM change: 0
- Today’s APR: 3.147%
- DOD change: up 7.7 basis points
- WOW change: up 23 basis points
- MOM change: down 0.3 basis points
Today’s takeaway
Interest rates are up across the board today, Jan. 4, 2022. It’s difficult to say whether this is the beginning of a larger rate increase trend or simply a bump in the road for homebuyers and borrowers. If rates continue to go up, it may make sense to lock in your rate now. On the other hand, interest rates could just as easily dip back down in the coming days. Speak to a qualified mortgage expert to help you make a sound financial decision regarding any home purchase or refinance you may be planning in the near future.
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
Powered by Froala Editor