Mortgage Rates Today | December 28, 2021



Mortgage rates tend to rise almost everywhere today. However, rates remain historically very low. Borrowers with strong credit can still find attractive rates and low monthly payments on a new mortgage or when refinancing an existing loan.

  • The last rate for a 30 year fixed rate mortgage is 3.677%. ??
  • The last rate on a 15 year fixed rate mortgage is 2.59%. ??
  • The latest rate on a 5/1 ARM is 3.358%. ??
  • The latest rate on a 7/1 ARM is 3.312%. ??
  • The latest rate on a 10/1 ARM is 3.332%. ??

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.

The latest 30-year fixed-rate mortgage rates

  • The 30-year rate is 3.677%.
  • It’s a day to augment by 0.061 percentage point.

The 30 year fixed rate mortgage is the most popular home loan in America. Borrowers like the long payback period because it means that the monthly payments are relatively low. The fixed rate means that the monthly payments will never change, which is useful for planning and protection against inflation. The downsides to a 30 year loan are that the interest rate tends to be higher than on a shorter term loan. This means that you will pay more for a 30 year loan over time.

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Average mortgage rates

Data based on U.S. mortgages closed December 27, 2021

Type of loan Dec. 27 Last week Change
Conventional Fixed 15 Years 2.59% 2.55% 0.04%
Conventional Fixed 30 Years 3.68% 3.61% 0.07%
ARM rate 7/1 3.31% 2.99% 0.32%
ARM rate 10/1 3.33% 3.13% 0.2%

Your actual rate may vary

The last 15 years fixed rate mortgage rates

  • The 15-year rate is 2.537%.
  • It’s a day to augment by 0.053 percentage points

The interest rate for a 15 year fixed rate mortgage tends to be lower than for a 30 year loan. This makes the short term more economical in the long term. However, the monthly payments will be higher so not work for everyone.

The latest adjustable rate mortgage rates

  • The latest rate on a 5/1 ARM is 3.358%. ??
  • The latest rate on a 7/1 ARM is 3.312%. ??
  • The latest rate on a 10/1 ARM is 3.332%. ??

Variable rate mortgages generally offer low interest rates for the first few years after taking out the loan. Once the adjustment period begins, however, the rate can increase – sometimes dramatically. For example, a 5/1 ARM will have a fixed rate for five years before it starts to change each year. Most people who opt for an ARM plan move or refinance before the end of the fixed rate period.

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 3.35%.
  • The rate for a 30-year VA mortgage is 3.446%. ??
  • The rate for a 30-year jumbo mortgage is 3.689%. ??

The latest 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 3.846%. ??
  • The refinance rate on a 15 year fixed rate refinance is 2.703%. ??
  • The refinancing rate on an ARM 5/1 is 3.416%. ??
  • The refinancing rate on an ARM 7/1 is 3.359%. ??
  • The refinancing rate on an ARM 10/1 is 4.011%. ??
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Average mortgage refinancing rates

Data based on U.S. mortgages closed December 27, 2021

Type of loan Dec. 27 Last week Change
Conventional Fixed 15 Years 2.7% 2.66% 0.04%
Conventional Fixed 30 Years 3.85% 3.79% 0.06%
ARM rate 7/1 3.36% 3.06% 0.3%
ARM rate 10/1 4.01% 3.63% 0.38%

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 edged up slightly for the rest of the year.

Looking ahead, experts believe interest rates will rise further in 2022, but also modestly. Factors that could affect rates include continued economic improvement and more labor market gains. The Federal Reserve has also started cutting back on mortgage-backed securities purchases and announced that it plans to hike the federal funds rate three times 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 27, 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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