Mortgage Rates Continue Upward Climb and Consumers Fear Things Could Get Worse

Are you prepared to pay higher mortgage rates? Here's what you should know.

On March 15, 2021, average mortgage rates increased for all loans. While there was a recent brief hiatus from rising rates, that trend has reversed as interest rates have kept climbing.

Unfortunately, many consumers expect things to worsen in the coming months, despite already rising rates. Here's how much you'd pay for a home loan today.

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

30-year mortgage rates

The average 30-year mortgage rate today is 4.295%. The 30-year remains the favored loan for most buyers because of its affordable monthly payments.

20-year mortgage rates

The average 20-year mortgage rate today is 3.927%. This loan provides a good compromise between a longer 30-year loan and a shorter 15-year one. It offers a lower rate and lower total costs than a 30-year loan, but doesn't come with the high monthly payments of a 15-year loan.

15-year mortgage rates

The average 15-year mortgage rate today is 3.454%. Despite the low rate and savings on interest over time, this loan is cost prohibitive for many because a high monthly payment is necessitated by such a short payoff time.

5/1 ARMs

The average 5/1 ARM rate is 3.468%. There is a risk of this rate rising, since it's locked in only for the first five years.

Consumers expect the worst when it comes to mortgage rates

Although rates have been rising steadily, many consumers fear things will only get worse. A recent Fannie Mae survey revealed that 67% of respondents believe rates will rise over the next 12 months. If you're one of them, you may wish to shop around with the best mortgage lenders ASAP and lock in a loan rate before costs go higher.