Reason for holiday cheer: Today's mortgage rates hold at bargain lows | Dec. 21, 2021
Buyers who lock in a mortgage rate today have a chance to get ahead of expected increases in 2022.
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Chris Jennings is an authority on mortgages and personal finance. His work has been featured by Fox Business, MSN, AOL, and Yahoo Finance.
Updated October 16, 2024, 3:05 AM EDT
- 30-year fixed mortgage rates: 3.125%, unchanged
- 20-year fixed mortgage rates: 2.875%, unchanged
- 15-year fixed mortgage rates: 2.250%, unchanged
- 10-year fixed mortgage rates: 2.250%, unchanged
Rates last updated on Dec. 21, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
What this means: With 2022 less than two weeks away, mortgage interest rates have largely settled at bargain lows. But experts predict rates will rise in the new year, so locking in a mortgage rate today could allow buyers to realize significant interest savings. Rates across all repayment terms remain relatively low, but buyers who choose a mid-length rate might find the best deals. Rates for 20-year mortgages have held steady for 10 straight days, and 15-year rates haven’t been lower since October.
These rates are based on the assumptions shown here. Actual rates may vary.
Browse rates from multiple lenders so you can make an informed decision about your home loan.
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Looking at today’s mortgage refinance rates
Mortgage refinance rates remained unmoved today, keeping the savings window open a bit longer for homeowners considering a refinance. But experts widely predict rate increases are coming in 2022. If you’re considering refinancing an existing home, check out what refinance rates look like:
- 30-year fixed-rate refinance: 3.125%, unchanged
- 20-year fixed-rate refinance: 2.875%, unchanged
- 15-year fixed-rate refinance: 2.250%, unchanged
- 10-year fixed-rate refinance: 2.250%, unchanged
Rates last updated on Dec. 21, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
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What to know about locking in a mortgage rate
From the time you begin house-hunting to closing day, your real estate transaction can take months. Mortgage rates can fluctuate from day to day, and vary significantly from month to month.
When you lock in a mortgage rate, your lender commits to giving you that rate at closing, no matter how rates change between the lock date and closing date. Mortgage rate locks typically last from 30 to 60 days, but if you think you’ll need more time, you can negotiate with your lender to extend the lock.
It usually costs nothing to lock in a mortgage rate, although some lenders may charge a fee between .25% and .5% of the total loan amount for a lock longer than 60 days.
You can lock in a mortgage rate at any time during the home buying process. So if you’d rather not home hunt during the holidays, you can still take advantage of today’s low mortgage rates by locking in a rate today and shopping for a home in the new year. Just be sure to get a long enough lock.
Current mortgage rates
Today’s average mortgage interest rate across all terms is 2.625% for the second straight day — the second-lowest it’s been all month.
The current interest rate for a 30-year fixed-rate mortgage is 3.125%. This is the same as yesterday. Thirty years is the most common repayment term for mortgages because 30-year mortgages typically give you a lower monthly payment. But they also typically come with higher interest rates, meaning you’ll ultimately pay more in interest over the life of the loan.
The current interest rate for a 20-year fixed-rate mortgage is 2.875%. This is the same as yesterday. Shortening your repayment term by just 10 years can mean you’ll get a lower interest rate — and pay less in total interest over the life of the loan.
The current interest rate for a 15-year fixed-rate mortgage is 2.250%. This is the same as yesterday. Fifteen-year mortgages are the second most-common mortgage term. A 15-year mortgage may help you get a lower rate than a 30-year term — and pay less interest over the life of the loan — while keeping monthly payments manageable.
The current interest rate for a 10-year fixed-rate mortgage is 2.250%. This is the same as yesterday. Although less common than 30-year and 15-year mortgages, a 10-year fixed rate mortgage typically gives you lower interest rates and lifetime interest costs, but a higher monthly mortgage payment.
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Rates last updated on Dec. 21, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
How Credible mortgage rates are calculated
The rates assume a borrower has a 740 credit score and is borrowing a conventional loan for a single-family home that will be their primary residence. The rates also assume no (or very low) discount points and a down payment of 20%.
How mortgage rates have changed
Today, mortgage rates are mixed compared to this time last week.
- 30-year fixed mortgage rates: 3.125%, the same as last week
- 20-year fixed mortgage rates: 2.875%, the same as last week
- 15-year fixed mortgage rates: 2.250%, down from 2.375% last week, -0.125
- 10-year fixed mortgage rates: 2.250%, down from 2.375% last week, -0.125
Rates last updated on Dec. 21, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
With more than 4,500 reviews, Credible maintains an "excellent" Trustpilot score.
Fixed vs. adjustable-rate mortgages: How they affect interest costs
Mortgage interest rates can be fixed (meaning they remain the same for the life of your loan) or variable (the rate can change after an initial period). The type of mortgage you choose will affect your interest rate.
Interest rates for fixed-rate mortgages tend to be higher than the initial interest rate for adjustable rate mortgages, or ARMs. But they don’t change, so you’ll know at the beginning of your loan exactly how much interest you’ll pay over the life of your mortgage.
Initial interest rates for ARMs are typically lower than fixed-rate mortgages. But after the end of an introductory period, your interest rate will change — and it could increase significantly. Introductory periods can vary from several months to a year or a few years. After the introductory period, your interest rate will be based on an index your lender specifies. ARMs may or may not cap how much your interest rate can increase.
It’s common for homeowners with adjustable-rate mortgages to refinance into fixed-rate loans when their introductory period is about to end.
Looking to lower your home insurance rate?
A home insurance policy can help cover unexpected costs you may incur during home ownership, such as structural damage and destruction or stolen personal property. Coverage can vary widely among insurers, so it’s wise to shop around and compare policy quotes.
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As a Credible authority on mortgages and personal finance, Chris Jennings has covered topics that include mortgage loans, mortgage refinancing, and more. He’s been an editor and editorial assistant in the online personal finance space for four years. His work has been featured by MSN, AOL, Yahoo Finance, and more.