Will Home Buyers Be Looking at 6% Mortgage Rates This Year?

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Mortgage rates have been rising sharply all year. How high will they get?

Mortgage rates held steady at low levels for all of 2021. Then 2022 began, and things began to change rapidly.

Here's a summary of mortgage rates for April 15:

Mortgage Type Today's Interest Rate
30-year fixed mortgage 5.167%
20-year fixed mortgage 4.885%
15-year fixed mortgage 4.315%
5/1 ARM 3.954%

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

30-year mortgage rates

The average 30-year mortgage rate today is 5.167%, up from 5.141% yesterday. You'll see a higher rate on a 30-year mortgage compared to other loan products because you're borrowing over a longer period of time.

20-year mortgage rates

The average 20-year mortgage rate today is 4.885%, up from 4.825% yesterday. You'll get a lower interest rate on a 20-year loan than a 30-year loan, but your monthly payments will be higher.

15-year mortgage rates

The average 15-year mortgage rate today is 4.315%%, up from 4.260% yesterday. Over time, you'll spend less on interest with a 15-year loan than a longer-term one, but your monthly payments could be a lot higher than they'd be with a 30-year loan.

5/1 ARMs

The average 5/1 ARM rate is 3.954%, down from 3.989% yesterday. A 5/1 ARM can save you money on your monthly mortgage payments initially. In time, though, your rate could climb, leaving you with higher monthly payments.

How high will mortgage rates get?

Based on where mortgage rates stand today, it's not unreasonable to think that the average 30-year loan could reach 6% at some point this year. Mortgage rates are likely to keep climbing due to plans on the part of the Federal Reserve to hike up its federal funds rate several times in 2022.

Of course, if borrowing really gets that expensive, it could cause a huge buyer pullback. Once that happens, home prices should start to come down as a result of reduced demand. That could give the housing market a much needed cool-off.

Either way, it's clear that borrowing could remain quite expensive in 2022, so anyone looking to move forward with a home purchase should make a point to shop around with different mortgage lenders before signing up for a home loan. Eking out even a little bit of savings could go a long way at a time when rates are higher.

Our Research Expert

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