Mortgage rates for Jan. 20, 2022: Rate relief appears during a volatile week
It’s been a rollercoaster of a week for mortgage rate movement: Rates go up, then they go back down. Timing is everything in this kind of lending environment, and today’s rates may offer some relief for would-be homebuyers. Rate interest rates are either holding steady or going down today, Jan. 20, 2022.
Could a rate hike still be on the horizon?
Before you get too excited, though, it’s unlikely that these dips will hold for very long. Economists still anticipate mortgage rates to steadily increase over the next couple of months. With inflation at its highest point in decades, the Fed will continue to taper bond purchases in response. That will impact the treasury bond market, which in turn, influences current mortgage rates. The wheels are already in motion, today’s good news notwithstanding.
Also keep in mind that even though interest rates on adjustable rate mortgage (ARM) loans have dropped day over day (DOD), they’re still up week over week (WOW) and month over month (MOM). This rate decrease could simply be a temporary blip. With that in mind, locking in your rate now could be better in the long run if you’ve been holding off on a mortgage refinance. While we can’t know exactly what rates will do in the future, it may be a while before we see lending conditions as favorable as today’s rate positions.
30-year fixed rate
Conventional fixed rate loans didn’t budge at all today. Given all the recent rate volatility, no movement at all is actually pretty good. However, interest rates on 30-year fixed rate loans are still up week over week and month over month. Using the borrower profile listed below, your monthly mortgage payment would be $1,368.15.*
- Today’s rate: 3.625%
- DOD change: 0
- WOW change: up 12.5 basis points**
- MOM change: up 63.5 basis points
- Today’s APR: 3.724%
- DOD change: 0
- WOW change: 12.7 basis points
- MOM change: up 64.1 basis points
15-year fixed rate
Rate conditions aren’t much different for 15-year fixed rate loans. While they’re holding steady right now, interest rates are higher today than they were a week or a month ago. With these loan terms, you’d spend $2,053.76* on your mortgage each month.
- Today’s rate: 2.875%
- DOD change: 0
- WOW change: up 12.5 basis points
- MOM change: up 50 basis points
- Today’s APR: 3.045%
- DOD change: 0
- WOW change: up 12.7 basis points
- MOM change: up 50.6 basis points
FHA 30-year fixed rate
FHA 30-year fixed rate loans are having a better day than any other mortgage option. Interest rates dropped a bit this morning, and are lower than they were last week. Having said that, rates for this type of loan are still up compared with last month’s positions. As of now, your mortgage payment on an FHA 30-year fixed rate loan would be $1,326.29.*
- Today’s rate: 3.375%
- DOD change: down 12.5 basis points
- WOW change: down 12.5 basis points
- MOM change: up 37.5 basis points
- Today’s APR: 4.165%
- DOD change: down 12.9 basis points
- WOW change: down 12.9 basis points
- MOM change: up 38.6 basis points
10-year ARM
Interest rates on 10-year ARMs have also gone down today. That’s the good news. The bad news: they’re higher today than they were last week or last month. Still, looking at rate activity over the last few days, any rate drop is a good one. If you locked in your rate today, your monthly mortgage payment would be $1,347.13.*
- Today’s rate: 3.5%
- DOD change: down 12.5 basis points
- WOW change: up 12.5 basis points
- MOM change: up 75 basis points
- Today’s APR: 3.303%
- DOD change: down 7.9 basis points
- WOW change: up 7.8 basis points
- MOM change: up 46.2 basis points
Today’s takeaway
Prospective homebuyers — plus anyone considering a refi — received some much-needed relief today, with interest rates across every loan type either holding firm or going down. Current bond market conditions suggest that this rate dip is more likely to be an aberration than a long-running trend. Volatility is the name of the game with mortgage rate movement, so keep a close eye on current interest rates to spot the next drop.
Need help deciding the best time to lock in your rate? That’s what mortgage experts do best. Reach out to a qualified loan officer to discuss your loan options and 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 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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