Mortgage Rates Are Rising, and Home Sales Are Being Affected

Will your ability to buy a home be affected by rising mortgage rates?

Mortgage rates have been rising faster than anticipated. Today's rates are up considerably from the start of the year and have climbed since yesterday, in keeping with recent trends. Check out today's average mortgage rates here.

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

30-year mortgage rates

The average 30-year mortgage rate today is 4.619%. By comparison, on Jan. 3, 2022, the average rate for this loan was 3.369%.

20-year mortgage rates

The average 20-year mortgage rate today is 4.370%, a considerable increase from 3.101% on Jan. 3 of this year.

15-year mortgage rates

The average 15-year mortgage rate today is 3.746%, while it was just 2.537% at the start of the year.

5/1 ARMs

The average 5/1 ARM rate is 3.533%, up from 2.943% on Jan. 3, 2022.

Home buying is affected by rising mortgage rates, but you shouldn't necessarily put off your purchase

Rising mortgage rates have caused economists to project that fewer homes will be sold this year. However, this isn't necessarily dire news.

Demand for homes had surged in 2021, driven by record low rates last year. Prices were driven up as a result of the fact so many buyers wanted to purchase properties while not many homes were being listed during the pandemic. The market could cool off this year, though, as fewer buyers qualify for or take out mortgages.

If prices fall, buyers who are well-qualified to get approved for a competitive home loan could be in a good position to buy. In fact, a drop in prices could potentially offset any added costs that come from a rise in interest rates.

The key is for buyers to improve their financial credentials, research home prices carefully, rate-shop with different lenders, and ensure they buy a property they afford that makes financial sense for them over the long term.