Mortgage Rates Keep Rising, So Is It the Right Time to Buy?

What do rising rates mean for your home-buying prospects?

Mortgage rates have been steadily on the rise. Does this mean that it's a good time to purchase a home now before rates go up further? Here's what you should know about today's average rates on April 12, 2022 and your future home-buying prospects.

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

30-year mortgage rates

The average 30-year mortgage rate today is 5.092%. Rates went above 5.00% on this loan on April 11, which is the first time in years that they have been so high.

20-year mortgage rates

The average 20-year mortgage rate today is 4.657% This loan, too, could soon come with an average rate topping 5.00%.

15-year mortgage rates

The average 15-year mortgage rate today is 4.165% While this rate is considerably lower than the 30-year or 20-year rates, monthly payments are going to be higher due to the short payoff timeline.

5/1 ARMs

The average 5/1 ARM rate is 4.011%. This is an adjustable-rate mortgage, which means if rates are higher in five years than they are now, mortgage costs could increase.

Is it a good time to buy a home?

Mortgage rates are undoubtedly much higher than the record lows they hit last year -- and are, in fact, the highest they have been in years. But this doesn't mean it's necessarily a bad time to buy.

Rising rates could reduce demand and lead to home prices declining after they surged during the pandemic. This could mean purchasing a house is still within reach, even if you must pay a higher rate for your home loan. Rates are also expected to continue rising throughout the year, so if you need to buy soon, you may not want to wait as you could face even higher financing costs.

To find out what rates are available to you and to see how much your home loan would cost you if you buy soon, compare rates from at least three of the best mortgage lenders before locking in.