Mortgage Rate Trends to Watch: Why Are Rates Rising?
Want to learn about today's mortgage rates and recent trends? Read on.
Despite a recent brief drop, mortgage rates have been steadily on the rise from last year's record lows. Today is no exception when it comes to fixed-rate loans. Check out today's average rates for March 11 compared with yesterday's and get some insight into why rates have been going up in 2022.
Mortgage Type | Today's Interest Rate |
---|---|
30-year fixed mortgage | 4.167% |
20-year fixed mortgage | 3.839% |
15-year fixed mortgage | 3.375% |
5/1 ARM | 3.471% |
30-year mortgage rates
The average 30-year mortgage rate today is 4.167%, up from yesterday's average of 4.140%. This rate is up considerably from Jan. 3, 2022 when the average interest rate on a 30-year mortgage was 3.369%.
20-year mortgage rates
The average 20-year mortgage rate today is 3.839%, up from yesterday's average of 3.832%. This, too, is a big increase from January 3rd's 3.101% average rate.
15-year mortgage rates
The average 15-year mortgage rate today is 3.375%, up from yesterday's average of 3.322%. Compared to the 2.537% average rate on January 3, the 15-year loan will cost much more each month.
5/1 ARMs
The average 5/1 ARM rate is 3.471%, down from yesterday's average of 3.539%. By comparison, the average rate on January 3, 2022 was 2.943%.
Why are mortgage rates on the rise?
As you can see, rates today are considerably higher than at the start of the year. There are a number of possible reasons for that.
- Inflation has driven up the price of goods and services, and home loans are no exception.
- Ten year treasury rates have also risen sharply, and these are closely tied to mortgage rates because these debt instruments typically compete for investors.
- The economy is also returning to a more normal state, while rates were pushed down during the heart of the pandemic when the country went into a deep recession.
- The federal reserve is both slowing its purchase of mortgage-backed securities and raising rates, which will indirectly impact mortgage loans.
These factors are out of your control if you're buying a home. But you can take steps to qualify for the best rate, including improving your credit score and shopping around for the best mortgage lenders.
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