During the pandemic, mortgage rates were historically low. Now that rates are back to pre-pandemic levels, many homebuyers are finding that their budgets don’t stretch quite as far as they did when 30-year rates were below 3%.

However, that doesn’t mean it’s time to abandon your homebuying plans.

“Buyers should keep in mind that increasing rates doesn’t mean it’s a bad time to buy a home,” says Robert Heck, vice president of mortgage at Morty. “Rates are rising to reflect the overall strength of the economy and combat rising inflation, ending the pandemic-era policies and secondary market activity that kept rates at historic lows.”

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.

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 six more times in 2022, following March’s quarter point increase.

Average mortgage rates have ticked up recently, and the Fed’s announcements indicate that mortgage rates will probably continue to 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. 

For borrowers with an ARM, it is important to keep track of the recent rise in rates. Robert Heck, vice president of mortgage at Morty

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 the seven year fixed-rate period is up, 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.

“For borrowers with an ARM, it is important to keep track of the recent rise in rates,” Heck says. “If you are already beyond or coming up on the end of your fixed-rate period (which vary based on loan type), it is worth taking a closer look at what your rate might become once it begins to adjust.”