Mortgage rates for Feb. 24, 2022: Rates drop in the face of war
After months of growing tensions, Russian forces invaded Ukraine this week, kicking off a geopolitical firestorm. The emerging conflict will likely have far-reaching effects that stretch across the globe and impact financial markets. We’re already seeing mortgage rates respond to the invasion this morning. Rate interest rates for most major loan types have decreased today, Feb. 24, 2022. In particular, rates for both conventional and FHA 30-year fixed loans are down day over day (DOD).
Although rates, for the most part, dropped today, it’s hard to say if that is an aberration or an early sign of a new trend. Keep in mind that the Federal Reserve still intends to increase the federal funding rate — possibly as early as next month — which could lead to mortgage rate hikes down the road. With today’s dip, now could be the time to act if you’re in the market to buy a new home, refinance your mortgage or consolidate your debt with a cash-out refi.***
30-year fixed rate
Rates on 30-year fixed rate loans are down today after seeing an uptick yesterday. Mortgage rates for this type of loan have also dipped week over week (WOW). That being said, 30-year rates are up month over month (MOM) and still hover above 4%. With these terms, home buyers who fit our borrower profile can expect to pay $1,449.60* each month on a $375,000 mortgage.
- Today’s rate: 4.1%
- DOD change: down 15 bps**
- WOW change: down 40 bps
- MOM change: up 62.5 bps
- Today’s APR: 4.203%
- DOD change: down 15.1 bps
- WOW change: down 40.4 bps
- MOM change: up 63.1 bps
15-year fixed rate
The 15-year fixed rate mortgage is the only major loan type to not see interest rates drop today. Even so, rates are holding firm day over day and are actually lower now than they were a week ago. Like 30-year loans, though, 15-year rates have gone up month over month. If you locked in your rate today, your monthly mortgage payment would be $2,126.28.*
- Today’s rate: 3.375%
- DOD change: 0
- WOW change: down 62.5 bps
- MOM change: up 50 bps
- Today’s APR: 3.375%
- DOD change: 0
- WOW change: down 63.2 bps
- MOM change: up 50.5 bps
FHA 30-year fixed rate
Mortgage rates on government-insured loans are down in response to the developments in Ukraine. Rates on FHA 30-year fixed rate loans have dropped to bring them in line with last week’s positions. Even with today’s dip, FHA 30-year rates are higher now than they were last month. As of today, you would spend $1,453.95* on an FHA 30-year mortgage each month.
- Today’s rate: 4.125%
- DOD change: down 12.5 bps
- WOW change: 0
- MOM change: up 75 bps
- Today’s APR: 4.940%
- DOD change: down 12.9 bps
- WOW change: 0
- MOM change: up 77.5 bps
Today’s takeaway
Russia’s invasion of Ukraine, while not surprising, has created a lot of uncertainty for the global markets. But for today, Feb. 24, 2022, the mortgage lending industry has responded with lower interest rates for most major loan types.
Rate drops have become increasingly rare over the last few weeks, so it could be a good idea to lock in your rate today if you’re in the process of buying a house or thinking about refinancing your mortgage. Our mortgage experts are here to help you make a sound financial decision with your home loan. Reach out 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.
***Using funds from a Cash-out Refinance to consolidate debt may result in the debt taking longer to pay off as it will be combined with borrower’s mortgage principle amount and will be paid off over the full loan term. Contact Rate for more information.
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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