Mortgage Rates on a Bumpy Ride -- But Does It Matter?

As mortgage rates fluctuate, is it worth waiting for the perfect time to buy a house?

In early March, mortgage rates fell after rising steadily for months. The brief decline spurred an interest in refinancing, and was likely driven by uncertainty in the financial markets that caused a brief run on bonds as war broke out in Ukraine. Things began to turn around in recent days, though, with rates resuming their slow but steady increase.

Today, rates continued that trend, creeping up again for both fixed-rate and adjustable-rate loan options. Here are today's average rates:

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

30-year mortgage rates

The average 30-year mortgage rate today is 4.140%, compared with 4.114% yesterday. This interest rate is the highest of the fixed-rate loan options, as loans with longer terms always come with higher rates.

20-year mortgage rates

The average 20-year mortgage rate today is 3.832%, compared with yesterday's average of 3.789%. Although higher than it was yesterday, this is considerably lower than the 30-year, which isn't surprising as banks take on less risk with shorter loan terms.

15-year mortgage rates

The average 15-year mortgage rate today is 3.322%, while yesterday it was 3.296%. The low rate and short payoff time make this loan the cheapest over time, but payments are expensive each month -- especially as rates have continued climbing in recent days.

5/1 ARMs

The average 5/1 ARM rate is 3.539%, compared with 3.488% yesterday. With so much recent volatility in the financial markets, you may not want to take a chance on an ARM since your rate could adjust up considerably after the initial five year lock-in period.

How should would-be borrowers respond to volatility in mortgage rates?

With rates changing so rapidly and with so much current economic uncertainty, home buyers may wonder if they should try to time their purchase to get the best possible rate. Unfortunately, this is rarely successful as no one can predict what types of external events will lead to rate changes.

Instead, borrowers should focus on getting their own financial credentials in the best possible shape. If you have good credit, limited debt, a hefty down payment, and emergency reserves to cover your costs if you experience an interruption in income, fluctuations in mortgage rates shouldn't affect your home purchase.

Mortgage loans are still affordable, interest is tax deductible if you itemize, and rates are low by historical standards, so don't let the current uncertainty interfere with your home-buying dreams. Compare rates from several of the best mortgage lenders, find the most affordable option for you, and move forward when you've found the right house.