What Decline? Mortgage Rates Are Back Up on March 9, 2022

Are mortgage rates looking favorable today? Read on to find out.

Home buyers got a bit of a break at the start of the week when mortgage rates dipped downward. But now, they seem to be back on an upward climb. All fixed-loan products are sitting at higher levels today compared to yesterday, and the 5/1 ARM rose as well.

Here's a summary of rates for March 9:

Data source: The Ascent's national mortgage interest rate tracking.

30-year mortgage rates

The average 30-year mortgage rate today is 4.114%. That's already a notable jump from yesterday, when the average 30-year loan sat at 4.072%.

You can reap savings on your mortgage rate by locking in a shorter-term loan -- especially a 15-year mortgage. But given that home prices are sitting at record highs, you may need the lower monthly payments that come with a 30-year mortgage.

20-year mortgage rates

The average 20-year mortgage rate today is 3.789%. As was the case with the 30-year loan, the 20-year loan rose sharply from yesterday's average rate of 3.732%.

15-year mortgage rates

The average 15-year mortgage rate today is 3.296%. The 15-year loan rose only modestly from yesterday's average 3.276% rate. And it's definitely your most affordable borrowing option from a pure interest rate perspective. However, you'll need to make sure you can swing the higher monthly payments a 15-year loan will leave you with.

5/1 ARMs

The average 5/1 ARM rate is 3.488%, up from 3.458% yesterday. While that's a nice discount compared to where the 30-year loan is sitting, with an adjustable-rate mortgage, you'll be running the risk of your rate climbing over time.

Is now a good time to get a mortgage?

After seeing a substantial jump in average rates during January and February, March was a bit kinder to borrowers on the mortgage rate front. But now, it seems like rates could be back on the upswing.

One thing to keep in mind is that while today's rates might look high compared to the rates borrowers enjoyed in 2021, historically speaking, they're actually quite low. And so it's really not a bad time to lock in a mortgage.

But whether it's a good time to buy a home is a different story. In January, the national median listing price was 10.3% higher than it was a year prior, and 25% higher than it was in January of 2020.

Last year, borrowers were able to lock in lower mortgage rates to help offset higher home prices. This year, rates are still competitive, but buyers won't enjoy the same level of savings.

There's also an inventory issue to consider. The inventory of homes on the market is down over 60% compared to early 2020. By virtue of that alone, home prices are likely to stay elevated in the near term. And so while you can still snag a relatively attractive interest rate on a home loan, you may ultimately come to the decision that now's not the time to enter the housing market.

But if you are ready to buy a home, be sure to shop around with different mortgage lenders and see what rate offers they make you. Doing some research could be your ticket to snagging a better deal.