Mortgage Rates Today Are Rising | December 14, 2021


Mortgage rates are on the rise again as the average rate on a 30-year fixed rate mortgage climbs to 3.626% today. Almost all other types of loans also experience higher rates, with the rate on a 30-year refinance loan increasing to 3.798%.

Even though rates are slightly higher today, they are still very low historically, and borrowers with strong credit should be able to lock in to a competitive interest rate and comfortable monthly payments for a home purchase or mortgage refinance.

  • The last rate on a 30 year fixed rate mortgage is 3.626%. ??
  • The last rate on a 15 year fixed rate mortgage is 2.591%. ??
  • The latest rate on a 5/1 ARM is 2.196%. ??
  • The latest rate on a 7/1 ARM is 3.416%. ??
  • The latest rate on a 10/1 ARM is 3.428%. ??

Money’s daily mortgage rates reflect what a borrower with a 20% down payment and a 700 credit score – roughly the national average – could pay if they applied for a home loan right now. Daily rates are based on the average rate of 8,000 lenders offered to applicants on the previous business day. Freddie Mac’s weekly rates will generally be lower because they measure the rates offered to borrowers with a higher credit rating.

30-year fixed rate mortgage rates today

  • The 30-year rate is 3.626%.
  • It’s a day infold by 0.013 percentage points.
  • It’s a month infold by 0.097 percentage point.

Most borrowers opt for the long amortization period of a 30-year fixed rate mortgage because the monthly payments are lower and more affordable than with a comparable short-term loan. The predictable interest rate and regular monthly payments are also attractive features of the loan. The interest rate will be higher, however, so it will be the more expensive option in the long run.

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Average mortgage rates

Data based on U.S. mortgages closed on December 13, 2021

Type of loan December 13 Last week Change
Conventional Fixed 15 Years 2.59% 2.59% 0.0%
Conventional Fixed 30 Years 3.63% 3.6% 0.03%
ARM rate 7/1 3.42% 3.09% 0.33%
ARM rate 10/1 3.43% 3.22% 0.21%

Your actual rate may vary

15 years fixed rate mortgage rates today

  • The 15-year rate is 2.591%.
  • It’s a day infold by 0.015 percentage point.
  • It’s a month offold by 0.008 percentage point.

The shorter term of a 15 year fixed rate mortgage will result in higher monthly payments compared to an equivalent 30 year loan. However, the shorter term also means you’ll be paying off the debt in half the time, which can be a plus. The interest rate is also generally lower, so this is the most economical option over time, if you can afford the highest payments.

Variable rate mortgage rates today

  • The latest rate on a 5/1 ARM is 2.196%. ??
  • The latest rate on a 7/1 ARM is 3.416%. ??
  • The latest rate on a 10/1 ARM is 3.428%. ??

Another option is a variable rate mortgage. ARMs will typically start with a low introductory rate that is set for a set number of years before starting to adjust to market conditions. An ARM 5/1, for example, will have a fixed rate for five years before starting to reset once a year. If you don’t plan on staying in the house for the full term of the loan, an ARM might be worthwhile. Keep in mind, however, that once the loan starts to reset, there can be a sharp increase in the rate which can lead to a significant increase in monthly payments.

Current mortgage rates: VA, FHA and jumbo loan rates

The average rates for FHA, VA and jumbo loans are:

  • The rate on a 30-year FHA mortgage is 3.427%. ??
  • The rate for a 30-year VA mortgage is 3.516%. ??
  • The rate for a 30-year jumbo mortgage is 3.61%. ??

Current mortgage refinancing rates

The average refinancing rates for 30-year loans, 15-year loans and ARMs are:

  • The refinance rate on a 30 year fixed rate refinance is 3.798%. ??
  • The refinance rate on a 15 year fixed rate refinance is 2.705%. ??
  • The refinancing rate on an ARM 5/1 is 2.476%. ??
  • The refinancing rate on an ARM 7/1 is 3.08%. ??
  • The refinancing rate on an ARM 10/1 is 3.959%. ??
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Average mortgage refinancing rates

Data based on U.S. mortgages closed on December 13, 2021

Type of loan December 13 Last week Change
Conventional Fixed 15 Years 2.71% 2.7% 0.01%
Conventional Fixed 30 Years 3.8% 3.78% 0.02%
ARM rate 7/1 3.08% 2.88% 0.2%
ARM rate 10/1 3.96% 3.7% 0.26%

Your actual rate may vary

Where Are Mortgage Rates Going This Year?

Mortgage rates fell through 2020. Millions of homeowners responded to low mortgage rates by refinancing existing loans and taking out new ones. Many people have bought homes that they might not have been able to afford if the rates were higher.

In January 2021, rates briefly fell to all-time low levels, but tended to increase throughout the month and into February.

Looking ahead, experts believe interest rates will rise further in 2022, but modestly. Factors that could affect rates include continued economic improvement and more labor market gains. The Federal Reserve has also started to cut back on mortgage-backed securities purchases and plans to raise the federal funds rate sometime in 2022 to fight rising inflation.

While mortgage rates are likely to rise, experts say the increase won’t happen overnight, and it won’t be a dramatic jump. Rates are expected to stay near their historically low levels throughout the first half of the year, rising slightly later in the year. Even with rates rising, this will still be a good time to finance a new home or refinance a mortgage.

Factors that influence mortgage rates include:

  • The Federal Reserve. The Fed took swift action when the pandemic hit the United States in March 2020. The Fed announced plans to move money through the economy by lowering the Federal Fund’s short-term interest rate between 0% and 0.25%, which is as low as they go. The central bank has also pledged to buy mortgage-backed securities and treasury bills, supporting the housing finance market, but started curtailing those purchases in November.
  • The 10-year Treasury note. Mortgage rates move at the same pace as the yields on 10-year government treasury bills. Yields fell below 1% for the first time in March 2020 and have risen since then. On average, there is typically a 1.8 point “spread” between Treasury yields and benchmark mortgage rates.
  • The economy in the broad sense. Unemployment rates and changes in gross domestic product are important indicators of the overall health of the economy. When employment and GDP growth are low, it means the economy is weak, which can lower interest rates. Thanks to the pandemic, unemployment levels reached record levels early last year and have yet to recover. GDP has also been affected, and although it has rebounded somewhat, there is still a lot of room for improvement.

Tips for getting the lowest mortgage rate possible

There is no universal mortgage rate that all borrowers receive. Qualifying for the lowest mortgage rates takes a bit of work and will depend on both personal financial factors and market conditions.

Check your credit score and your credit report. Mistakes or other red flags can lower your credit score. The borrowers with the highest credit scores will get the best rates, so it’s essential to check your credit report before you begin the home search process. Taking action to correct mistakes will help increase your score. If you have high credit card balances, paying them off can also give you a quick boost.

Save money for a large down payment. This will lower your loan-to-value ratio, which means how much of the home’s price the lender has to finance. A lower LTV usually results in a lower mortgage rate. Lenders also like to see money that has been saved in an account for at least 60 days. It tells the lender that you have the money to finance the purchase of the house.

Shop around for the best rate. Don’t settle for the first interest rate a lender offers you. Check with at least three different lenders to see who is offering the lowest interest rate. Also consider the different types of lenders, such as credit unions and online lenders, in addition to traditional banks.

As well. take the time to learn about the different types of loans. While the 30-year fixed-rate mortgage is the most common type of mortgage, consider a shorter-term loan such as a 15-year loan or an adjustable rate mortgage. These types of loans often have a lower rate than a conventional 30-year mortgage. Compare the costs of everyone to see which one best suits your needs and your financial situation. Government loans – such as those backed by the Federal Housing Authority, the Department of Veterans Affairs, and the Department of Agriculture – may be more affordable options for those who qualify.

Finally, lock in your rate. Locking in your rate once you find the right rate, the right loan product, and the lender will help ensure that your mortgage rate does not increase until the loan closes.

Our mortgage rate methodology

Money’s Daily Mortgage Rates show the average rate offered by over 8,000 lenders in the United States for which the most recent rates are available. Today we’re posting the rates for Monday, December 13, 2021. Our rates reflect what a typical borrower with a credit score of 700 can expect to pay on a home loan right now. These rates were offered to people with a 20% deposit and include discount points.

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