Don't Be Afraid to Buy a Home as Mortgage Rates Continue to Increase

Despite rising mortgage rates, a home remains a good investment.

In recent months, mortgage rates have been on the rise. Check out today's average mortgage rates to see how they've changed over time.

Data source: The Ascent's national mortgage interest rate tracking.

30-year mortgage rates

The average 30-year mortgage rate today is 4.531%. This is up from yesterday and far above what rates were at the start of the year.

20-year mortgage rates

The average 20-year mortgage rate today is 4.269%. This also reflects an upward trend in rates.

15-year mortgage rates

The average 15-year mortgage rate today is 3.671%. Unsurprisingly, rates have been moving up here as well.

5/1 ARMs

The average 5/1 ARM rate is 3.435%. While this rate is also up from the start of the year, it's below the 30-year loan rate. Remember, though, that it can adjust after five years, and with rates on the rise it may not be a good time to gamble on an ARM.

Don't let higher rates make you afraid to buy a home

It's discouraging that mortgage rates are so much higher than at the start of the year. But you shouldn't let this deter you from homeownership. As Suze Orman explained the last time rates crept up considerably, they are still low by historical standards and homeownership generally remains a good investment.

The finance guru has warned would-be borrowers not to overreact to rate changes, but instead to work on improving their credit and other factors within their control that can help them to qualify for the most affordable loans currently available.

Not only is this good advice, but it's also important to keep in mind that if rates do fall in the future, it's possible to refinance any time with the best mortgage lenders. So you don't necessarily need to try to time your purchase to a potential future decline in rates if you're ready to buy now.