Many companies featured on Money advertise with us. Opinions are our own, but compensation and
in-depth research determine where and how companies may appear. Learn more about how we make money.

By Leslie Cook
January 12, 2022
Money; Getty Images

Interest rates keep rising. Today's average rate for a 30-year fixed-rate mortgage climbed to 3.974%, an increase of 0.032 percentage points from yesterday. All other loan types saw higher rates as well, with the 30-year refinance rate moving up to 4.117%.

Despite the recent increase, mortgage rates are still historically low. Borrowers with good to excellent credit can still find competitive rates and monthly payments for either a home purchase or a mortgage refinance.

  • The latest rate on a 30-year fixed-rate mortgage is 3.974%.
  • The latest rate on a 15-year fixed-rate mortgage is 2.919%. ⇑
  • The latest rate on a 5/1 ARM is 2.458%. ⇑
  • The latest rate on a 7/1 ARM is 3.803% ⇑
  • The latest rate on a 10/1 ARM is 4.043%. ⇑

Money's daily mortgage rates reflect what a borrower with a 20% down payment and a 700 credit score — roughly the national average score — might pay if he or she applied for a home loan right now. Each day's rates are based on the average rate 8,000 lenders offered to applicants the previous business day. Freddie Mac's weekly rates will generally be lower, since they measure rates offered to borrowers with higher credit scores.

Today's 30-year fixed-rate mortgage rates

  • The 30-year rate is 3.974%.
  • That's a one-day increase of 0.032 percentage points.
  • That's a one-month increase of 0.367 percentage points.

The steady interest rate and constant monthly payments of a 30-year fixed-rate mortgage make this type of loan the most popular home loan in America. The long payback time is also a plus, as it means the monthly payments will be lower and more affordable. However, the interest rate will be higher than the rate on a shorter-term loan, making it the more expensive option over time.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Average Mortgage Rates
Data based on US mortgage loans closed on Jan 11, 2022
Loan TypeJan 11Last WeekChange
15 Year Fixed Conventional2.92%2.66%0.26%
30 Year Fixed Conventional3.97%3.74%0.23%
7/1 ARM Rate3.8%3.39%0.41%
10/1 ARM Rate4.04%3.73%0.31%
Your actual rate may vary
Find your actual rate at Quicken Loans.
Click below to get started and see your rate today.
View Rates for January 26, 2022

Today's 15-year fixed-rate mortgage rates

  • The 15-year rate is 2.919%.
  • That's a one-day increase of 0.014 percentage points.
  • That's a one-month increase of 0.315 percentage points.

Some borrowers prefer the shorter payback time of a 15-year fixed-rate mortgage. This type of loan will also have a lower interest rate than a longer-term mortgage, so you won't pay as much interest. It may not fit everyone's budget, however, because the short term means the monthly payments will be higher than an equivalent 30-year loan.

The latest rates on adjustable-rate mortgages

  • The latest rate on a 5/1 ARM is 2.458%. ⇑
  • The latest rate on a 7/1 ARM is 3.803%. ⇑
  • The latest rate on a 10/1 ARM is 4.043%. ⇑

An adjustable-rate mortgage could be a good option for borrowers who plan on selling their home or refinancing in a relatively short period of time. ARMs will start with a low, fixed, interest rate that will eventually start adjusting at regular intervals. For instance, the rate on a 5/1 ARM will be fixed for five years, then change every year. The potential drawback is that once the interest rate becomes adjustable, it can increase significantly, raising the monthly payments along with it.

The latest 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 3.799%. ⇑
  • The rate on a 30-year VA mortgage is 3.875%. ⇑
  • The rate on a 30-year jumbo mortgage is 3.68%.

The latest mortgage refinance rates

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

  • The refinance rate on a 30-year fixed-rate refinance is 4.117%. ⇑
  • The refinance rate on a 15-year fixed-rate refinance is 3.052%. ⇑
  • The refinance rate on a 5/1 ARM is 2.754%. ⇑
  • The refinance rate on a 7/1 ARM is 3.945%. ⇑
  • The refinance rate on a 10/1 ARM is 4.188%. ⇓
Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Average Mortgage Refinance Rates
Data based on US mortgage loans closed on Jan 11, 2022
Loan TypeJan 11Last WeekChange
15 Year Fixed Conventional3.05%2.77%0.28%
30 Year Fixed Conventional4.12%3.87%0.25%
7/1 ARM Rate3.95%3.89%0.06%
10/1 ARM Rate4.19%4.11%0.08%
Your actual rate may vary
Find your actual rate at Quicken Loans.
Click below to get started and see your rate today.
View Rates for January 26, 2022

Where are mortgage rates heading this year?

Mortgage rates sank through 2020. Millions of homeowners responded to low mortgage rates by refinancing existing loans and taking out new ones. Many people bought homes they may not have been able to afford if rates were higher. In January 2021, rates briefly dropped to the lowest levels on record, but trended slightly higher through the rest of the year.

Looking ahead, experts believe interest rates will rise more in 2022, but also modestly. Factors that could influence rates include continued economic improvement and more gains in the labor market. The Federal Reserve has also begun tapering its purchase of mortgage-backed securities and announced it anticipates raising the federal funds rate three times in 2022 to combat 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 should stay near historically low levels through the first half of the year, rising slightly later in the year. Even with rising rates, it will still be a favorable 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 of 2020. The Fed announced plans to keep money moving through the economy by dropping the short-term Federal Fund interest rate to between 0% and 0.25%, which is as low as they go. The central bank also pledged to buy mortgage-backed securities and treasuries, propping up the housing finance market but began cutting back those purchases in November.
  • The 10-year Treasury note. Mortgage rates move in lockstep with the yields on the government’s 10-year Treasury note. Yields dropped below 1% for the first time in March 2020 and have been rising since then. On average, there is typically a 1.8 point “spread” between Treasury yields and benchmark mortgage rates.
  • The broader economy. 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 push interest rates down. Thanks to the pandemic, unemployment levels reached all-time highs early last year and have not yet recovered. GDP also took a hit, and while it has bounced back 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 little bit of work and will depend on both personal financial factors and market conditions.

Check your credit score and credit report. Errors or other red flags may be dragging your credit score down. Borrowers with the highest credit scores are the ones who will get the best rates, so checking your credit report before you start the house-hunting process is key. Taking steps to fix errors will help you raise your score. If you have high credit card balances, paying them down can also provide a quick boost.

Save up money for a sizeable 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 translates to 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 you have the money to finance the home purchase.

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

Also. take time to find out about different loan types. While the 30-year fixed-rate mortgage is the most common type of mortgage, consider a shorter-term loan like a 15-year loan or an adjustable-rate mortgage. These types of loans often come with a lower rate than a conventional 30-year mortgage. Compare the costs of all to see which one best fits your needs and financial situation. Government loans — such as those backed by the Federal Housing Authority, the Department of Veterans Affairs and the Department of Agriculture — can be more affordable options for those who qualify.

Finally, lock in your rate. Locking your rate once you’ve found the right rate, loan product and lender will help guarantee your mortgage rate won’t increase before you close on the loan.

Our mortgage rate methodology

Money’s daily mortgage rates show the average rate offered by over 8,000 lenders across the United States the most recent business day rates are available for. Today, we are showing rates for Tuesday, January 11, 2022. Our rates reflect what a typical borrower with a 700 credit score might expect to pay for a home loan right now. These rates were offered to people putting 20% down and include discount points.

More from Money: