Upward climb continues for mortgage rates

ZACH WICHTER
BANKRATE.COM
Mortgage rates continues to rise this week.

Multiple key mortgage rates ticked up again this week. Rates remain near record lows with the average 30-year fixed rate 0.89 percentage points below the 2019 average annual rate.

The average rate for the benchmark 30-year fixed mortgage is 3.24 percent, up 4 basis points from a week ago. Last month on the 9th, the average rate on a 30-year fixed mortgage was lower at 2.85 percent.

At the current average rate, you’ll pay principal and interest of $434.66 for every $100,000 you borrow. That’s $2.19 higher compared with last week.

The average 15-year fixed-mortgage rate is 2.51 percent, up 1 basis point since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $667 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 save thousands of dollars over the life of the loan in total interest paid and build equity much faster.

The average rate on a 5/1 adjustable rate mortgage is 2.98 percent, falling 2 basis points from a week ago.

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

Monthly payments on a 5/1 ARM at 2.98 percent would cost about $421 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 3.28 percent, an increase of 5 basis points over the last seven days. This time a month ago, the average rate on a jumbo mortgage was lower, at 2.88 percent.

At the average rate today for a jumbo loan, you’ll pay principal and interest of $436.85 for every $100,000 you borrow. That’s $2.74 higher compared with last week.