Don't Get Too Comfortable With Lower Mortgage Rates. They're Already Rising

Is it a good time to get a mortgage? That depends.

Last week, mortgage rates declined modestly as a result of several factors. But they began climbing late last week, and now, we're starting the current week off with higher rates for fixed loan products.

Here's a summary of mortgage rates for March 14:

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

30-year mortgage rates

The average 30-year mortgage rate today is 4.212%, up from 4.167% on Friday. That's a pretty notable jump, though it's also worth noting that historically speaking, 4.212% is by no means a terrible rate. It's just higher than what buyers may be used to after 2021's amazingly low numbers.

20-year mortgage rates

The average 20-year mortgage rate today is 3.878, up from 3.839% on Friday. You'll note a climb that's comparable to the 30-year loan.

15-year mortgage rates

The average 15-year mortgage rate today is 3.399%, up from 3.375% on Friday. That's a more narrow increase than what we're seeing for longer-term fixed loans.

5/1 ARMs

The average 5/1 ARM rate is 3.416%, which is actually a nice drop from Friday's average rate of 3.471%. It may be tempting to sign a 5/1 ARM right now given the savings compared to a 30-year loan. But those savings may only be temporary, and after five years, you could be looking at higher payments as your rate adjusts upward.

Will mortgage rates keep climbing?

They might.

There are different factors contributing to higher rates right now. Not only are inflation levels high, but the Fed is raising its short-term borrowing rates, which could impact consumer interest rates, including mortgages. That's why you may want to lock in a mortgage sooner rather than later if you're serious about buying a home in the near term.

Unfortunately, home prices remain elevated on a national level. And so you may be reliant on an affordable mortgage rate to make homeownership feasible. As such, it pays to start shopping around with different mortgage lenders soon and see what rates they have available -- before borrowing gets more expensive and you're forced to put off your plans.