Mortgage Interest Rates Today, April 5, 2022 | Rates Eased – NextAdvisor

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Jason Stauffer is a journalist based in Chicago covering personal finance for NextAdvisor. His previous work includes…
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What we’re seeing today is a handful of principal mortgage rates have slumped. Both 30-year fixed and 15-year fixed mortgage rates dwindled. We also saw an upward trend in the average rate of 5/1 adjustable-rate mortgages (ARM).
After nearly two years of record-low mortgage rates, 2022 started off with rates nearly rising to levels we haven’t seen since before the pandemic.
That doesn’t mean you need to cancel your home purchase or refinance plans. Yes, rates are higher than they were in 2021, but it’s important to keep in mind 30-year fixed rates are still much lower than just a few short years ago.
Besides, there’s a lot more that goes into a homebuying decision than just an interest rate. Buying a home is about making a lifestyle choice. While the interest rate market for mortgages can shape a decision, it’s wise to not base it solely on a few basis points on a mortgage rate. What’s most important to consider is to set a realistic homebuying budget and stick to it.
Let’s take a look at current mortgage rates, where rates have been in the past, and what it all means for the borrower.
The average mortgage rates are as follows:
Since the beginning of 2022, mortgage rates have risen significantly. The economy is in post-pandemic recovery-mode and record-high inflation are two of the factors causing rates to trend upwards. The Federal Reserve is expected to raise it’s short-term interest rate and make other changes to address high inflation. These moves are expected to increase borrowing costs.
Russia’s war in Ukraine is causing ripple effects in the world financial markets. We are seeing higher gas prices and falling stock prices. As a result the market has become more uncertain and volatile. Another concern is the possible resurgence of COVID-19 variants. In general, the Omicron variant has declined in cases in the United States, but its future cannot be predicted with any certainty.
Most experts agree that mortgage rates will rise throughout 2022. However, there will be a great deal of volatility during the short term.
Even with the recent dramatic increases, mortgage rates remain at relatively low levels and are still considered historically favorable.
Low interest rates of the past were helping offset rising home prices. But the overall cost of homeownership is now rising with rising rates. With a combination of limited supply of homes, prices are up significantly from before the pandemic. The massive demand from buyers and higher costs to build homes is also contributing to the surge.
The difference of a point or so can mean a lot of money over a 30-year mortgage. But experts advise against trying to time the market to get the best mortgage rate. It’s more important to focus on finding the right house, and do it when your personal lifestyle and financial situation indicate it’s the right time. Mortgage lenders’ rates can vary significantly. In order to get the best deal, shop around between a few different mortgage lenders.

Today’s rates are higher than they were in the low-rate years of 2020 and 2021, but they still aren’t high if you zoom out prior to that timeframe. Rates were well above 4% in 2018-2019. Before 2008 a “good” rate was considered around 5%. What this means is current mortgage interest rates are still very good from a long-term view despite breaking through the psychological barrier of 4%.
NextAdvisor generally uses Bankrate survey data. However, this chart above is pulling data from the Freddie Mac survey. Freddie Mac is a government-sponsored entity that collects mortgage data. The rates in this chart differ slightly from the data elsewhere on this page, the historical trends generally track with each other. Looking back at Freddie Mac historical rates offers a good snapshot into how today’s rates compare with the past two decades.
The catchall term for the fees you pay to get a mortgage is closing costs. Everything from the prepaid property taxes to your appraisal fees fall into this category. In general, closing costs are 3% to 6% of your loan amount, so the larger your mortgage the more you’ll pay as a total dollar amount. Your closing costs play a crucial role in determining your annual percentage rate (APR). In other words, the higher your closing costs, the higher your APR will be..

Today’s Mortgage Refinance Rates

There’s good news if you’ve been considering a refinance because the mean rates for 15-year fixed and 30-year fixed refinance loans trailed off. Shorter term, 10-year fixed-rate refinance mortgages also trailed off.
The average refinance rates are as follows:
Current Mortgage Rates.
The 30-year fixed-mortgage rate average is 4.85%, which is a decrease of 1 basis point from last week.
The median rate for a 15-year fixed mortgage is 4.05%, which is a decrease of 4 basis points from the same time last week.
A 15-year, fixed-rate mortgage’s monthly payment is larger than what you would pay with a 30-year mortgage. However, 15-year loans have some considerable benefits: You’ll pay thousands less in interest and pay off your loan much sooner.
A 5/1 ARM has an average rate of 3.35%, which is a rise of 8 basis points from the same time last week.
An adjustable-rate mortgage is ideal for borrowers who will sell or refinance before the rate changes. If that’s not the case, their interest rates could end up being remarkably higher after a rate adjusts.
For the first five years, a 5/1 ARM will typically have a lower interest rate compared to a 30-year fixed mortgage. Keep in mind that your payment could end up being hundreds of dollars higher after a rate adjustment, depending on the terms of your loan.
To see where mortgage rates are going, we rely on information collected by Bankrate, which is owned by the same parent company as NextAdvisor. The daily rates survey focuses on home loans where the borrower has a 740+ credit score, 20% equity or more, and lives in the home.
The current average rates listed below and based on the Bankrate mortgage rate survey:
Rates accurate as of April 5, 2022.
Add your interest rate and other estimated figures into NextAdvisor’s mortgage calculator to get a good idea of what your monthly payment will be.

Mortgage Rate Frequently Asked Questions (FAQ):

There are two key considerations to getting the best interest rate: Loan-to-value ratio (LTV), and your credit score.
To get the best interest rate, you’ll need a credit score between 700 to 800. Having a credit score above 800 is nice, but will likely have a minimal impact on your rate.
Mortgage providers provide the biggest mortgage rate reductions to home buyers that are deemed less risky. A large down payment is a signal to lenders that you have more skin in the game and are less likely to stop making payments. A down payment of 20% or more will save you money in two ways: with a more favorable mortgage rate, and you’ll be able to avoid paying for private mortgage insurance (PMI).
Mortgage rates move up and down on a daily basis, and it’s impossible to time the market. So locking in your interest rate right now is a good idea because overall, rates are historically favorable.
A rate lock will only last for a set amount of time, typically 30-60 days. If you hit a snag during closing and it looks like your rate lock will expire you should contact your lender. It may be able to extend the rate lock, however, you might have to pay a fee for that privilege.

At NextAdvisor we’re firm believers in transparency and editorial independence. Editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by our partners. We do not cover every offer on the market. Editorial content from NextAdvisor is separate from TIME editorial content and is created by a different team of writers and editors.
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