Mortgage rates for Feb. 17, 2022: Rates level off after spike
It’s been a pretty rough week for mortgage rates. Although we saw fairly modest increases in our last mortgage update, Rate interest rates have shot up since then. Week-over-week (WOW) and month-over-month (MOM) positions are up across the board — in some cases, more than 100 basis points (bps) higher. However, the most notable development is that the national average 30-year fixed rates are sitting well above 4% for the first time in a long while.
Rate activity for today, Feb. 17, 2022, offers some relief, though, as there hasn’t been much movement at all. Nearly every major loan type is holding firm right now, aside from FHA 30-year loans. With that in mind, now could be a good time to lock in your rate on a traditional or cash-out refinance. In the current lending environment, no rate activity is some of the best news you can hear.
30-year fixed rate
Interest rates on 30-year fixed rate mortgages haven’t changed day over day (DOD). But that doesn’t tell the full story. After months — years, really — of 30-year rates staying below the 4% mark, they shot up to 4.5% this week. Taking a look at our historical rates, you would have to go all the way back to January 2019 to find rates this high. If you fit our borrower profile, your 30-year mortgage payment would be $1,520.06.*
- Today’s rate: 4.5%
- DOD change: 0
- WOW change: up 62.5 bps**
- MOM change: up 100 bps
- Today’s APR: 4.607%
- DOD change: 0
- WOW change: up 63.1 bps
- MOM change: up 101 bps
15-year fixed rate
Like 30-year loans, today’s rate positions on 15-year fixed rate loans can be a little misleading. While rates have held firm overnight, their month-over-month increase is the highest we’ve seen from any loan type. If you locked in your rate right now, you would spend $2,219.06* on your 15-year mortgage each month.
- Today’s rate: 4%
- DOD change: 0
- WOW change: up 87.5 bps
- MOM change: up 125 bps
- Today’s APR: 4.182%
- DOD change: 0
- WOW change: up 88.5 bps
- MOM change: up 126.4 bps
FHA 30-year fixed rate
While every other loan type has held firm today, rates on FHA 30-year fixed rate loans are ticking upward. Mortgage rates for FHA 30-year loans are higher today than they were yesterday, last week and last month. With these loan terms, your monthly mortgage payment would be $1,453.95.*
- Today’s rate: 4.125%
- DOD change: up 12.5 bps
- WOW change: up 40 bps
- MOM change: up 75 bps
- Today’s APR: 4.940%
- DOD change: up 12.9 bps
- WOW change: up 41.3 bps
- MOM change: up 77.5 bps
5-year ARM
Activity on adjustable rate mortgage (ARM) options has been pretty consistent today: Rates haven’t moved one bit day over day. That being said, rates on 5-year ARMs are currently higher than either 7-year or 10-year options. As of now, you’d be looking at a mortgage payment of $1,542.42* for this type of loan.
- Today’s rate: 4.625%
- DOD change: 0
- Today’s APR: 3.515%
- DOD change: 0
7-year ARM
As we said, ARM rates are holding steady today. Interest rates on 7-year ARMs are higher than 10-year options, but lower than 5-year ARMs. Under these lending conditions, you would pay $1,432.25* on your 7-year ARM.
- Today’s rate: 4%
- DOD change: 0
- MOM change: up 25 bps
- Today’s APR: 3.432%
- DOD change: 0
- MOM change: up 12.1 bps
10-year ARM
Interest rates on 10-year ARM loans are lower than any other loan type today — fixed rate, adjustable rate or government-insured. They’re also the only major loan with mortgage rates below 4%. Considering refinancing to a 10-year ARM? If you lock in your rate now, your monthly installment would be $1,410.71.*
- Today’s rate: 3.875%
- DOD change: 0
- MOM change: up 50 bps
- Today’s APR: 3.540%
- DOD change: 0
- MOM change: up 31.5 bps
Today’s takeaway
Mortgage rates have leveled off today after the spike we saw earlier this week. Only one major loan type — FHA 30-year mortgages — has seen any movement. With rates holding firm, this could be a good day to lock in your rate on a mortgage refinance. If nothing else, be sure to keep watching current mortgage rate activity to stay ahead of developing trends.
Ready to take the next steps on your refi? Reach out to one of our mortgage experts to learn more about your financing options.
Disclaimer
*Above scenarios assume a first lien position, 40 day rate lock on a primary residence and are subject to change without notice. Subject to underwriting guidelines and applicant’s credit profile. The actual interest rate, APR and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by Lender. Contact Rate for more information and up to date rates.
**Basis points (bps) measure the percentage change on interest rates. One basis point represents a 0.01% shift.
Interest rates are based on a borrower profile fitting the following criteria:
- Zip code: 60031
- Home type: Single-family house
- Purchase price: $375,000
- Down payment: 20% ($75,000)
- Mortgage balance: $300,000
- FICO score: 740+
- Military member: No
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