Mortgage Interest Rates for March 2022

March is turning out to be a volatile month for mortgage rates—thanks in large part to lingering COVID-19 concerns and growing uncertainty in the global financial markets due to the Russian invasion of Ukraine. These aspects, plus the Federal Reserve’s declared decision to raise interest rates over the next few months means that mortgage interest rates are likely to start rising through the course of 2022. While that may feel like bad news, the long stretch of historically low mortgage interest rates means, even with raises, rates will remain relatively low—making now a good time to finance a new home and get locked in at a low mortgage interest rate.

 

Variables Affecting March 2022 Mortgage Interest Rates

Mortgage interest rates have been at near-historic lows over 2021, thanks in part to the COVID-19 pandemic and the resulting recession. The 30-year fixed mortgage rate at one point fell below 3%. However, these rates started to climb towards the end of 2021 rising as high as 3.22% as of December 3 of that year, and are predicted to rise as high as 4.1% by the end of 2022.

 

While COVID-19 is still having an effect on the economy and on mortgage interest rates, newer players on the seen, such as the uncertainty in Russia and Ukraine and rising gas prices, are also putting pressure on rates. The result is a level of volatility with rates rising and falling week by week.

 

So, what does this mean as the rest of March plays out? That we will see mortgage interest rates tick up slightly one day, only to have them nudge back down another day. This is expected to keep them variable throughout the month, though changing conditions make it hard to say with any certainty that rates will return to 2022 lows.

 

Mortgage Interest Rates as of December 2021

Knowing that mortgage interest rates are likely to fluctuate slightly throughout March 2022, here are the rates as of March 7, 2022:

 

  • The 30-year fixed mortgage rate dropped from the previous week to 4.10%.
  • The 15-year fixed mortgage rate dropped from the previous week to 3.40%.
  • The 5/1 adjustable-rate mortgage dropped from the previous week to 4.09%.
  • The jumbo mortgage rate dropped from the previous week to 2.92%.

 

In addition to these rates, the 30-year mortgage refinance rate dropped to 4.08%.

 

How 2022 Homebuyers Are Affected

The rising mortgage rates, while still low, have definitely put some pressure on new home buyers. With mortgage interest rates now on average 1% higher than 2021 lows, the overall cost of purchasing a home has gone up. On the flip side, the rates have also helped to cool some of the white-hot market pressures that we have seen in terms of housing inventory over the last few months. While inventory is still low historically (meaning there have been more people looking to buy a home than there are homes for sale), the change in interest rates may help to balance out that dynamic and stabilize housing prices.

 

At the end of the day, even with rates ticking upwards, overall mortgage interest rates still remain relatively low which still means 2022 may be a good time to buy a new home. What is most important is that you look at the total cost of the home and decide whether you can afford it, regardless of the mortgage interest rate you may be paying. A home you may have considered buying for $350,000 a year ago, may now be selling for $380,000 which means a need for a bigger down payment and higher monthly payments, regardless of interest rates.

 

As to where mortgage interest rates may go from here, it really depends. With waning COVID concerns and rising international concerns, plus inflation and economic recovery considerations it is very likely that the Federal Reserve will look to continue raising interest rates—which in turn pushes mortgage interest rates. At this point, all we can do is wait and see.

 

Contact us today and find out more about mortgage interest rates and buying and financing your home.

 

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Published 03.17.22

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