Mortgage rates for Feb. 22, 2022: FHA rates tick upward while conventional loans hold firm
After last week’s surge, we were due for some good news on the mortgage rate front. Although Rate interest rates haven’t dropped today, Feb. 22, 2022, they are holding steady for the most part. The only major loan type to see a rate increase this morning is the FHA 30-year loan. Conventional fixed rate mortgages haven’t experienced any day-over-day (DOD) change at all.
These lulls can be good times to lock in your rate on an upcoming purchase or refinance since there’s no way of knowing for sure if mortgages will go up or down in the coming weeks. If you’re not quite ready to take the next steps on a refi, though, at least keep tracking the latest mortgage rates to get a sense of how they’re trending.
30-year fixed rate
The best news today is interest rates on 30-year fixed rate loans have dropped week over week (WOW), falling back below 4%. If you checked in with some of our recent mortgage rate updates, you may recall that 30-year rates rose last week to their highest position in two years. Although 30-year rates are still up month over month (MOM), seeing them fall back down to earth (relatively speaking) is about as positive a sign as we can expect in this rate environment. If you fit our borrower profile, you would pay $1,427.93* each month on a $300,000 home loan.
- Today’s rate: 3.975%
- DOD change: 0
- WOW change: down 15 bps**
- MOM change: up 50 bps
- Today’s APR: 4.077%
- DOD change: 0
- WOW change: down 15.1 bps
- MOM change: up 50.5 bps
15-year fixed rate
It’s been a similar story with 15-year fixed rate mortgages. There’s been no day-over-day change and rates are lower today than they were last week. However, 15-year mortgage rates have gone up compared with last month’s positions. As of now, your monthly mortgage payment would be $2,089.83.*
- Today’s rate: 3.125%
- DOD change: 0
- WOW change: down 12.5 bps
- MOM change: up 25 bps
- Today’s APR: 3.297%
- DOD change: 0
- WOW change: down 12.7 bps
- MOM change: up 25.2 bps
FHA 30-year fixed rate
Things aren’t quite so rosy with government-insured loans. Interest rates on FHA 30-year fixed rate mortgages are up day over day, week over week and month over month. In addition, the annual percentage rate (APR) on this type of loan is inching closer to 5%. Because it accounts for all financing expenses, like origination fees and PMI, APR is often considered to be a more accurate representation of the total cost of a home loan than the interest rate alone. If you locked in your rate today, you’d pay $1,453.95* on your FHA loan each month.
- Today’s rate: 4.125%
- DOD change: up 12.5 bps
- WOW change: up 12.5 bps
- MOM change: up 75 bps
- Today’s APR: 4.940%
- DOD change: up 12.9 bps
- WOW change: up 12.9 bps
- MOM change: up 77.5 bps
Today’s takeaway
Rate interest rates have settled down for the most part after last week’s spike. Conventional fixed rate mortgages are holding firm, while the only increase we’ve seen today has been on the FHA front.
Slow rate days can come as a relief in lending environments like we’re seeing now. Between the Fed’s continued promise to pull back purchases on mortgage-backed securities and the ongoing uncertainty surrounding geopolitics, there’s just no way to know how mortgage rates will respond to new developments on the national and global stage.
With that in mind, it could be a good idea to lock in your rate on a traditional or cash-out refi now while rates are relatively stable than wait to see what happens in the coming weeks and months. When you’re ready to take the next step, our mortgage experts are here to help you find the best financing terms to meet your needs.
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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