Mortgage rates for Nov. 23, 2021: Rates creep back up after dip
Nothing lasts forever, it seems. After starting the week with day-over-day (DOD) drops across most major loan types, the pendulum swung back in the other direction today, Nov. 23, 2021. Guaranteed Rate mortgage rates rose for all loans except for 30-year fixed rate mortgages, which held steady.
None of this is a surprise, however, given yesterday’s bond market activity and the subsequent investor response. The market reacted poorly to news that Jerome Powell would be re-nominated as the Chair of the Federal Reserve over Lael Brainard. Investors expected a Brainard nomination to slow rate increases, but with Powell staying on, many traders believe the central bank will start raising rates sooner rather than later.
With that in mind, it may be a good idea to reach out to a mortgage expert to lock in your rate if you’re considering a refi in the near future.
30-year fixed rate
The 30-year fixed rate mortgage was the lone exception to today’s rate increases. There was no DOD or week-over-week (WOW) change in either the interest rate or APR for this loan type, starting the day with a 3.250% rate and a 3.345% APR*. Given the borrower profile listed below, that would result in a mortgage payment of $1,305.62.
15-year fixed rate
Meanwhile, rates on 15-year fixed rate loans were on the move. The mortgage rate rose 25 basis points DOD** today to wind up at 2.625%. The APR went up to 2.792% — an uptick of 25.3 basis points DOD. Your mortgage payment under these conditions would be $2,018.07.
WOW changes weren’t quite as significant, with the rate increasing 12.5 basis points and the APR 12.6 basis points. Even so, any rate increase — no matter how slight — means higher monthly mortgage payments and more interest due over the life of a loan.
FHA 30-year fixed rate
Rate increases on FHA 30-year fixed rate mortgages struck a middle ground between the conventional fixed rate loans: higher than the 30-year, but not quite as dramatic a swing compared with 15-year mortgage rates. Interest rates on FHA 30-year fixed rate loans currently stand at 3.250%, which is a 12.5 DOD increase. The APR went up as well, rising 12.9 basis points DOD to land at 4.037%.
As such, you could expect to pay $1,305.62 each month on your mortgage with these rate terms. The good news is rates and APRs for this loan type didn’t budge WOW, so the opportunity loss if you didn’t lock in your rate over the last seven days is pretty minimal.
The biggest rate swing today could be seen with 10-year adjustable rate mortgages (ARM). Interest rates rose to 3.625% — a 50 basis point DOD increase. APR increases were comparatively lower, but still significant: the APR went up 31.2 basis points DOD and currently sit at 3.382%. Both mortgage rates and APR increased WOW for this loan type as well. The mortgage rate rose 12.5 basis points WOW, while the APR saw an uptick of 7.9 basis points WOW.
Despite the sharp rate rise for 10-year ARMs, the mortgage payment for our borrower profile would be $1,368.15 — not much higher than conventional or FHA 30-year fixed rate loans.
What does that all mean for homebuyers and anyone considering a refi? While rates will continue to fluctuate from day to day, some are expecting them to rise from the past year’s historic lows. If you wait too long to lock in your rate, you could wind up with a higher interest rate on your new purchase or refinance.
*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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