Today’s Mortgage, Refinance Rates: March 16, 2022

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Mortgage rates are climbing back up. They’re expected to continue increasing in 2022 as the


Federal Reserve

works to cool inflation in part by raising the federal funds rate, which can indirectly impact mortgage rates.

However, the Russian invasion of Ukraine has made the Fed’s path forward less certain, says Robert Heck, vice president of mortgage at Morty.

“[Fed Chair] Jerome Powell spoke on March 2 and confirmed a less aggressive outlook than was previously expected, noting that a rate hike of 25 basis points is likely coming at the Fed’s next meeting on March 16, but acknowledging the uncertainty of the current moment,” Heck says .

An increase of 25 basis points to the federal funds rate is equal to a quarter of a percentage, or 0.25%.

What does all this mean for homebuyers? While rates are increasing, that doesn’t mean you should rush into purchasing a home if you aren’t ready to do so. It’s true that rates are higher by pandemic standards, but they’re still relatively low historically and are comparable to prepandemic levels.

Mortgage rates today

Mortgage refinance rates today

Mortgage Calculator

Use our free mortgage calculator to see how today’s interest rates will affect your monthly payments.

Mortgage Calculator

$1,161
Your monthly estimated payment

  • payment to 25% higher down payment would save you $8,916.08 on interest charges
  • Lowering the interest rate by 1% would save you $51,562.03
  • Pay an additional $500 each month would reduce the loan length by 146 months

By clicking on “More details,” you’ll also see how much you’ll pay over the entire length of your mortgage, including how much goes toward the principal vs. interest.

Will mortgage rates go up in 2022?

To help the US economy during the COVID-19 pandemic, the Federal Reserve was aggressively buying assets, including mortgage-backed securities. This helped keep mortgage rates at historic lows.

However, the Fed has since begun tapering its asset purchases and is expected to increase the federal funds rate several times in 2022.

Average mortgage rates have ticked up recently, and the Fed’s announcements indicate that mortgage rates will probably continue to gradually increase in 2022. You may want to lock in a rate now instead of risk a higher rate later, but don’t rush to buy a home if you aren’t ready.

What is a fixed-rate mortgage vs. adjustable-rate mortgage?

Historically, adjustable mortgage rates tend to be lower than 30-year fixed rates. When mortgage rates go up, ARMs can start to look like the better deal — but it depends on your situation.

Fixed-rate mortgages lock in your rate for the entire life of your loan. Adjustable-rate mortgages lock in your rate for the first few years, then your rate goes up or down periodically.

Because adjustable rates start low, they are worthwhile options if you plan on selling your home before the interest rate changes. For instance, if you get a 7/1 ARM and want to move before seven years, you won’t risk paying a higher rate later.

But if you want to buy a forever home, a fixed rate could still be a better fit. Fixed rates are still relatively low, and you won’t chance your rate increasing in a few years.