Mortgage rates for Jan. 6, 2022: Rates continue to surge upward
It’s been a pretty rough week for mortgage rates. We reported on the post-New Year’s rate bump earlier this week, and interest rates have only climbed higher since then. As far as Guaranteed Rate’s mortgage rates are concerned, rates increased for every major loan type today, Jan. 6, 2022.
Again, there are no external factors to explain the rising interest rates — it’s simply a reflection of recent trading activity in the bond market. While it may be tempting to hold out for another dip to lock in your rate, we can’t really say for certain what will happen with interest rates going forward. If rates continue to climb, it may be a shrewd move to lock in your rate now rather than wait.
30-year fixed rate
Rates for the ever-popular 30-year fixed rate mortgage went up today — and not just on a day-over-day (DOD) basis, mind you. Interests increased month over month (MOM) and week over week (WOW), as well. Using our borrower profile listed below, your mortgage payment would be $1,326.29.*
- Today’s rate: 3.375%
- DOD change: up 12.5 basis points**
- WOW change: up 12.5 basis points
- MOM change: up 12.5 basis points
- Today’s APR: 3.471%
- DOD change: up 12.6 basis points
- WOW change: up 12.6 basis points
- MOM change: up 12.6 basis points
15-year fixed rate
Day over day, the rate increase on 15-year fixed rate loans pretty much mirrors 30-year loans. Looking at rate positions week over week, though, 15-year rates have gone up by an even bigger margin. With these loan terms, you would pay $2,018.07 on your mortgage each month.*
- Today’s rate: 2.625%
- DOD change: up 12.5 basis points
- WOW change: up 25 basis points
- MOM change: up 12.5 basis points
- Today’s APR: 2.792%
- DOD change: up 12.6 basis points
- WOW change: up 25.3 basis points
- MOM change: up 12.6 basis points
FHA 30-year fixed rate
Government-backed loans are experiencing the same rate increase as conventional, fixed rate options. Mortgage rates for FHA 30-year fixed rate loans have gone up pretty significantly compared with where they stood a month or even a week ago. As of now, your monthly mortgage payment would be $1,326.29.*
- Today’s rate: 3.375%
- DOD change: up 12.5 basis points
- WOW change: up 25 basis points
- MOM change: up 25 basis points
- Today’s APR: 4.165%
- DOD change: up 12.8 basis points
- WOW change: up 25.7 basis points
- MOM change: up 25.7 basis points
10-year ARM
The situation hasn’t been much different on the adjustable rate mortgage (ARM) front. In fact, 10-year ARM loans have seen a steeper rate increase than any other loan type today. Week over week, 10-year ARM rates are up big — a clear reflection of the bond market’s impact on current mortgage rates. Under these conditions, you’d spend $1,347.13 on your mortgage each month.*
- Today’s rate: 3.500%
- DOD change: up 25 basis points
- WOW change: up 50 basis points
- MOM change: up 37.5 basis points
- Today’s APR: 3.303%
- DOD change: up 15.6 basis points
- WOW change: up 31 basis points
- MOM change: up 23.3 basis points
Today’s takeaway
Mortgage rates have gone up yet again this week. Today’s rate bump can likely be attributed to ongoing bond market activity, as there are no macro economic drivers to easily explain the increase.
What does that mean for prospective homebuyers and borrowers? Rates could go in either direction from here, but waiting for them to drop back down could backfire. Keep in mind that current mortgage rates are still hovering around historic lows, so it may make sense to lock in your rate now, even with the recent uptick. If you’re ready to move forward with a home purchase or refinance your mortgage, then the next step is to reach out to a mortgage expert who can help you find the right financing options for your needs.
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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