The latest mortgage rates, and what pros say will happen to mortgage rates in 2022


What you might pay for a mortgage now

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Mortgage rates are rising: According to the latest data from Bankrate, 15-year-mortgage rates rose slightly from a day prior to 3.65% (3.69% APY), while 30-year mortgage rates ticked up slightly to 4.48% (4.49% APY). Though rates are on an upward trend, though they are still pretty near historic lows. You can see the lowest rates you might qualify for here.

What might happen to mortgage rates in the future

Many experts and economists predict rates will continue to inch higher. Indeed, we asked five economists and real estate pros in this MarketWatch Picks guide what they thought would happen to mortgage rates in 2022, and here’s what they told us. That said, rates likely won’t follow a smooth and steady path as pros expect minor dips and rises along the way.

How much does the mortgage rate matter?

A rate uptick of even 1% can add up to tens of thousands of dollars over the life of a loan, which means locking in the lowest mortgage rate possible is essential to saving money and making the lowest mortgage payments. Still, experts don’t advise trying to time the market, instead — if you can afford a home, you’re ready, and you’ve found one you like, it may make sense to pull the trigger. 

How to get the lowest mortgage rate

From boosting your credit score to looking into buying points to investigating first-time homebuyers programs, here’s a list of 8 secrets that get you the lowest mortgage rate possible for you. One big thing to also remember: To avoid being denied a mortgage, figure out your debt-to-income (DTI) ratio and make sure it’s at or below 36%. To calculate your DTI, divide your monthly debt payments (mortgage; credit card payments; auto, student or personal loans; child support, etc) by your gross monthly income. Lenders look for certain DTI ratios to ensure you’re not considered a risk as a borrower, and in fact, DTIs that don’t meet the threshold are the number one reason Americans are denied mortgages. And finally, shop around for the best rates and terms (3-5 quotes is ideal) for a mortgage. You can see the lowest rates you might qualify for here.

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