The benchmark 30-year fixed-rate mortgage’s average annual %age rate (APR) increased from 5.99% to 6.01% today’s mortgage rate. The 30-year fixed APR was 5.96% at this specific time last week. The 15-year fixed mortgage now has an average APR of 5.22% & 15-year fixed-rate mortgage APR was 5.16% during the previous week. APR is used to quote today going mortgage rate.

The 30-year fixed-rate jumbo mortgage’s average annual %age rate is 5.90%, while 5/1 ARM has an average APR of 5.64%. A 5/1 ARM’s average APR last week was 5.72%.

Forecast for Mortgage Interest Rates in 2022

Experts forecast that by the end of 2022, the 30-year fixed mortgage rate will range between 4.8% and 5.5%.

US Treasury bond yields directly impact mortgage rates, but rising inflation and the Federal Reserve’s monetary policies also have an effect. Mortgage rates always rise due to the Fed’s more strict monetary policy in response to rising inflation.

According to Lawrence Yun, chief economist and senior vice president of research at the National Association of Realtors (NAR), “the Fed will need to raise its fed funds rate eight to ten times this year with quarter-point increases.” Additionally, the Fed will gradually end its quantitative easing program, which will push long-term mortgage rates higher.

Here are several economists’ more detailed forecasts as of mid-April 2022:

• Mortgage Bankers Association (MBA): Mortgage rates are predicted to end in 2022 at 4.8% and gradually fall to 4.6% by 2024 as spreads narrow.
• Yun from NAR: By the end of the year, the 30-year fixed mortgage rate will most likely be between 5.3% and 5.5%. Some buyers may opt for a five-year ARM (adjustable-rate mortgage) at 4% before the end of this year.
• Matthew Spokesperson, senior economist at Zillow: Competing factors suggest that there will be little cause for mortgage rates to decrease anytime soon.

The Meaning of the Forecast for You

As today going mortgage rate continues to rise, borrowing has become more and more expensive for both borrowers and homeowners. Mortgage rates rose by a whopping 1.5% in the year’s first quarter, the most quarterly increase in 28 years. For borrowers, higher interest rates equate to more outstanding monthly payments. For instance, the monthly mortgage payment for a $400,000 house at a 5.10% interest rate is roughly $2,172. It does not include insurance, taxes, and other loan expenses. The monthly payment increases to $2,398 if the rate increases to 6%.

This implies that homeowners hoping to refinance to lock in a reduced interest rate are running out of time.

Trends in Mortgage Rates

Since the beginning of March, mortgage rates have been rising rapidly, reaching a 12-year high of 5.11% in mid-April. This is an increase of 2.14% in today going mortgage rate from this time last year.

A 15-year fixed-rate mortgage now costs, on average, 4.38%, up 2.09% from last year as of April 21.

In addition, the 5/1 ARM increased by 92 basis points to 3.75% from a year ago.

What Factors Determine Today Going Mortgage Rate?

In general, various economic factors, such as the yield on US Treasury bonds, the state of the economy, the demand for mortgages, and Federal Reserve monetary policy, affect mortgage rates.

While borrowers have little control over the overall economy, they have power over their financial situation and can negotiate the best rate. Borrowers can typically lock in cheaper rates with higher FICO scores, lower debt-to-income (DTI) ratios, and more significant down payments.

Mortgage Lenders of Choice

You can look for the most proficient mortgage lenders through various methods, such as through your bank, a mortgage broker, or online shopping. 

Comparison of Mortgage Rates

Comparison shoppers typically receive lower rates than those who choose the first lender they come across. Online price comparison is an excellent place to start. However, you can use a mortgage broker or apply for a mortgage through several lenders to acquire the most accurate estimate.

Going with a broker has the advantages of requiring less work from you and giving you access to their lender knowledge. For instance, they might be able to pair you up with a lender that can meet your borrowing requirements; this could be anything from a jumbo mortgage to a mortgage with a modest down payment. However, you could have to pay a fee depending on the broker.

It’s simple to apply for a mortgage on your own, and most lenders accept applications online, so you don’t need to travel to a branch or office. Additionally, since it’s typically only counted as one inquiry, applying for many mortgages in a short period won’t appear on your credit report.

Finally, remember to compare the APR as well as the interest rate when comparing rate quotes. The annual %age rate (APR) displays the entire cost of your loan.

Ratechecker Advisor’s Perspective on the Real Estate Market

Please bear in mind that today going mortgage rate indicates that home prices will continue to rise and that new home production will continue to lag, resulting in challenging housing conditions for buyers in the foreseeable future.

That might require some buyers to relocate further away from more expensive cities and into more cheap metro areas to reduce prices. Others may have to downsize, give up certain luxuries, or waive crucial conditions like a home inspection. Avoid waiving contingencies, though, as it can cost more in the long term if the seller does not make necessary repairs after an inspection reveals significant issues with the property.

Considering how long you intend to stay in the house is another crucial factor in this market. If the market turns around, buyers of “forever homes” won’t be as concerned because they can ride the wave of ups and downs. However, buyers anticipating moving within a few years are more vulnerable if the market declines. Because of this, it’s crucial to look around early on for a realtor and lender to know about the property market in your area of interest and whose advice you can rely on.