Will There Be Any Mortgage Rate Relief This Year?

Mortgage rates are higher than they've been in a long time. Will they come down at all in 2022?

Mortgage rates have been climbing since the start of the year, and they rose sharply last month on the heels of the Federal Reserve's first rate hike. But are rates guaranteed to keep climbing all year? Or might borrowers get a reprieve at some point?

Here's a summary of mortgage rates for April 6:

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

30-year mortgage rates

The average 30-year mortgage rate today is 4.863%, up from 4.837% yesterday. It's fair to assume that the 30-year loan will reach 5% this year -- possibly even during the spring.

20-year mortgage rates

The average 20-year mortgage rate today is 4.503%, up from 4.488% yesterday. It's not inconceivable to think that the 20-year loan will also reach 5% this year.

15-year mortgage rates

The average 15-year mortgage rate today is 3.988%, up from 3.976% yesterday. It won't be shocking at all for the 15-year loan to reach 4% this month.

5/1 ARMs

The average 5/1 ARM rate is 3.898%, up from 3.819% yesterday. Borrowers can reap initial savings with a 5/1 ARM compared to a 30-year mortgage, but they take on the risk of their rate climbing over time.

Will mortgage rates come down at all this year?

Mortgage rates fluctuate daily, and we're likely to have days when rates drop compared to where they sat 24 hours earlier. But should we expect a notable drop in mortgage rates? Not necessarily. And unfortunately, borrowers can't bank on seeing rates anywhere close to what was on offer in 2021.

The Federal Reserve still has a number of federal funds rate hikes planned for 2022. Based on that, we can expect mortgage rates to keep climbing. Whether that causes a major decline in buyer demand, however, is yet to be determined.

Buyers who still want to purchase a home this year will need to make sure to shop around with different mortgage lenders. At a time when rates are up, comparing offers could be the key to eking out a bit of savings.