Mortgage rates keep on rising

ZACH WICHTER
BANKRATE.COM
Mortgage rates continue to rise

Multiple benchmark mortgage rates are climbing higher this week. Rates remain near historic lows, with the average 30-year rate 1.04 percentage points below the 2019 annual average rate.

The average rate you’ll pay for a 30-year fixed mortgage is 3.09 percent, up 21 basis points from a week ago. A month ago, the average rate on a 30-year fixed mortgage was lower, at 2.86 percent.

At the current average rate, you’ll pay principal and interest of $426.47 for every $100,000 you borrow. That’s $11.31 higher compared with last week.

The average 15-year fixed-mortgage rate is 2.47 percent, up 10 basis points over the last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $665 per $100,000 borrowed. The bigger payment may be a little more difficult to find room for in your monthly budget than a 30-year mortgage payment would, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more rapidly.

The average rate on a 5/1 ARM is 2.97 percent, climbing 3 basis points over the last 7 days.

These loan types are best for people who expect to sell or refinance before the first or second adjustment. Rates could be materially higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 2.97 percent would cost about $420 for each $100,000 borrowed over the initial five years, but could ratchet higher by hundreds of dollars afterward, depending on the loan’s terms.

The average jumbo mortgage rate is 3.13 percent, an increase of 22 basis points from a week ago. A month ago, the average rate on a jumbo mortgage was below that, at 2.89 percent.

At the current average rate, you’ll pay principal and interest of $428.65 for every $100k you borrow. That’s an increase of $11.88 over what you would have paid last week.