Today’s Mortgage, Refinance Rates: Feb. 20, 2022

Mortgage rates have already increased in 2022, but it’s unlikely that they’ll continue to spike at this rapid pace.

“Homebuyers should remain calm, looking beyond the short-term rate shifts we’re seeing now and continuing to evaluate the decision to buy a home based on a number of different factors,” Robert Heck, vice president of mortgage at Morty, told Insider . “Affordability is really the key factor here – if the recent rate changes mean that someone can no longer afford to buy a home, that’s a sign that their budget may already have been stretched and that they may financial need more time to improve their profile. If you do not need to buy right now, the


volatility

we’re seeing could suggest taking a breather to see what direction rates head in.”

Don’t feel rushed to buy if you aren’t financially prepared — rates shouldn’t skyrocket over the next few weeks or months.

Mortgage rates today

Mortgage refinance rates today

Mortgage calculator

Use our free mortgage calculator to see how today’s interest rates will affect your monthly payments.

Mortgage Calculator

$1,161
Your estimated monthly payment

  • Paying a 25% higher down payment would save you $8,916.08 on interest charges
  • Lowering the interest rate by 1% would save you $51,562.03
  • Paying an additional $500 Each month would reduce the loan length by 146 months

By clicking on “More details,” you’ll also see how much you’ll pay over the entire length of your mortgage, including how much goes toward the principal vs. interest.

Will mortgage rates go up in 2022?

The


Federal Reserve

has been aggressively buying assets, including mortgage-backed securities, to help the US economy during the COVID-19 pandemic. This has been one factor keeping mortgage rates low.

In early November, the Fed announced that it will begin tapering asset purchasing. Then it said in December that it will be tapering purchasing at twice the speed than it originally predicted, and it plans to increase the federal funds rate three times in 2022.

If you do not need to buy right now, the volatility we’re seeing could suggest taking a breather to see what direction rates head in. Robert Heck, vice president of mortgage at Morty

Average mortgage rates have ticked up recently, and the Fed’s announcements indicate that mortgage rates will probably continue to gradually increase in 2022. You may want to lock in a rate now instead of a risk a higher rate later, but don’t rush to buy a home if you aren’t ready.

What is a fixed-rate mortgage vs. adjustable-rate mortgage?

In the past few weeks, fixed mortgage rates have been inching upward as adjustable rates drop. An adjustable-rate mortgage (ARM) could be a good deal depending on your situation.

Fixed-rate mortgages lock at your rate for the entire life of your loan. Adjustable-rate mortgages lock in your rate for the first few years, then your rate goes up or down periodically.

Because adjustable rates are starting low, they are worthwhile options if you plan on selling your home before the interest rate changes. For instance, if you get a 7/1 ARM and want to move before seven years, you won’t risk paying a higher rate later.

But if you want to buy a forever home, a fixed rate could still be a better fit. Fixed rates are relatively low, and you won’t your rate increasing in a few years.

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