Mortgage rates rise and home sales are affected

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Will your ability to buy a home be affected by rising mortgage rates?

Mortgage rates rose faster than expected. Today’s rates have risen significantly since the start of the year and have climbed since yesterday, in line with recent trends. See today’s average mortgage rates here.

Type of mortgage

Today’s interest rate

30-year fixed mortgage


20-year fixed mortgage


15-year fixed mortgage


ARM 5/1


The data source: The National Mortgage Interest Rate Tracker from The Ascent.

30-year mortgage rates

The average 30-year mortgage rate is now 4.619%. For comparison, as of January 3, 2022, the average rate for this loan was 3.369%.

20-year mortgage rates

The average 20-year mortgage rate today is 4.370%, a considerable increase from 3.101% on January 3 of this year.

15-year mortgage rates

The average 15-year mortgage rate is now 3.746%, down from just 2.537% at the start of the year.

RMA 5/1

The average ARM 5/1 rate is 3.533%, down from 2.943% on January 3, 2022.

Buying a home is affected by rising mortgage rates, but you shouldn’t necessarily postpone your purchase

Rising mortgage rates have led economists to predict that fewer homes will be sold this year. However, this is not necessarily bad news.

Housing demand had surged in 2021, driven by historically low rates last year. Prices rose due to so many buyers wanting to buy properties when few homes were listed during the pandemic. The market could calm down this year, however, as fewer buyers qualify for or take out mortgages.

If prices drop, buyers who are well qualified to get approved for a competitive home loan may be in a good position to buy. In fact, lower prices could potentially offset any additional costs resulting from higher interest rates.

The key is for buyers to improve their financial credentials, study home prices carefully, compare rates with different lenders, and make sure they’re buying a property they can afford and that makes financial sense for them in the long run. .

A Historic Opportunity to Save Potentially Thousands of Dollars on Your Mortgage

Chances are, interest rates won’t stay at multi-decade lows much longer. That’s why it’s crucial to act today, whether you want to refinance and lower your mortgage payments or are ready to pull the trigger on buying a new home.

Ascent’s in-house mortgage expert recommends this company find a low rate – and in fact, he’s used them himself to refi (twice!). Click here to learn more and see your rate. While this does not influence our product opinions, we do receive compensation from partners whose offers appear here. We are by your side, always. See The Ascent’s full announcer disclosure here.