Mortgage Rates Rise on December 23, 2021
30-year fixed rates climb to 3.653% as mortgage market continues upward trend.
Today’s Mortgage Rates Rise for Third Consecutive Day
Mortgage rates continued their upward trajectory on December 23, 2021, marking the third straight day of increases across most loan categories. The interest rate on a 30-year fixed-rate mortgage climbed to 3.653%, representing a daily increase of 0.037 percentage points. While this upward movement may concern some borrowers, experts emphasize that rates remain historically low, providing continued opportunities for those seeking competitive home financing or refinancing solutions.
Despite the recent rate increases, the lending environment remains favorable for borrowers with strong credit profiles. Those contemplating a new mortgage purchase or refinancing existing loans can still benefit from attractive rates and manageable monthly payments. The sustained low-rate environment reflects broader economic conditions and Federal Reserve policy considerations that continue to support homebuyer accessibility.
Current 30-Year Fixed-Rate Mortgage Rates
The benchmark 30-year fixed-rate mortgage, the most popular loan product among homebuyers, experienced notable movement on December 23, 2021. The rate reached 3.653%, up 0.037 percentage points from the previous day’s close. This represents a monthly decrease of 0.052 percentage points when compared to rates from November 23, 2021.
The 30-year fixed-rate mortgage remains the preferred choice for most borrowers due to its predictable monthly payments and long repayment period. The fixed nature of these loans protects borrowers from future rate increases, providing financial stability and payment certainty throughout the life of the loan. For those considering locking in current rates, this metric provides the foundation for long-term financial planning.
On the refinancing front, the average rate for a 30-year refinance increased to 3.821%, reflecting the overall market movement. Homeowners currently evaluating refinancing opportunities should compare these rates against their existing mortgage terms to determine potential savings or benefits from refinancing activity.
15-Year Fixed-Rate Mortgage Rates Today
The 15-year fixed-rate mortgage, appealing to borrowers seeking faster loan payoff and long-term interest savings, stood at 2.558% on December 23, 2021. This represented a daily increase of 0.014 percentage points but a monthly decrease of 0.145 percentage points compared to mid-November rates.
The 15-year fixed-rate mortgage offers a compelling alternative for borrowers prioritizing loan acceleration and reduced lifetime interest payments. Although monthly payments run higher than equivalent 30-year loans, the shorter amortization period generates substantial long-term savings. Borrowers with the financial capacity to handle higher monthly obligations often find 15-year mortgages economically advantageous.
For refinancing purposes, the 15-year fixed-rate refinance averaged 2.666%, up from the previous day’s rates. This option appeals to homeowners seeking to consolidate debt, reduce their loan term, or take advantage of favorable rate environments compared to their existing mortgage obligations.
Adjustable-Rate Mortgage (ARM) Options
Adjustable-rate mortgages present alternative financing structures for borrowers willing to accept initial rate variability in exchange for lower starting rates. On December 23, 2021, several ARM products demonstrated competitive positioning:
| ARM Type | Rate | Change |
|---|---|---|
| 5/1 ARM | 2.199% | ⇑ |
| 7/1 ARM | 3.41% | ⇑ |
| 10/1 ARM | 3.413% | ⇑ |
The 5/1 ARM, featuring a fixed rate for five years before adjustment, offered the lowest entry rate at 2.199%. The 7/1 ARM maintained its rate at 3.41%, while the 10/1 ARM stayed at 3.413%. These products appeal to borrowers planning shorter-term homeownership or those comfortable with eventual rate adjustments in exchange for immediate savings.
FHA, VA, and Jumbo Loan Rates
Specialized mortgage programs serve distinct borrower populations with unique financing needs. On December 23, 2021, rates for government-backed and premium loan products reflected market conditions:
| Loan Type | 30-Year Rate | Direction |
|---|---|---|
| FHA Mortgage | 3.318% | ⇑ |
| VA Mortgage | 3.404% | ⇑ |
| Jumbo Mortgage | 3.685% | ⇓ |
The FHA mortgage program, designed for borrowers with lower credit scores or limited down payment capacity, maintained a 30-year rate of 3.318%. VA loans, available exclusively to military veterans and service members, stood at 3.404%. Notably, the 30-year jumbo mortgage rate edged down to 3.685%, representing the only loan category declining on the day. Jumbo mortgages, used for loans exceeding conforming limits, serve borrowers financing premium properties or those in high-cost real estate markets.
Refinance Rate Summary
Homeowners evaluating refinancing opportunities face a diverse rate landscape across multiple product categories. The refinance market on December 23, 2021, presented the following options:
| Refinance Product | Rate | Movement |
|---|---|---|
| 30-Year Fixed Refinance | 3.821% | ⇑ |
| 15-Year Fixed Refinance | 2.666% | ⇑ |
| 5/1 ARM Refinance | 2.479% | ⇑ |
| 7/1 ARM Refinance | 3.197% | ⇑ |
| 10/1 ARM Refinance | 3.944% | ⇑ |
All refinance products experienced upward rate movement, reflecting the broader market trends. The 30-year fixed refinance rate of 3.821% provides homeowners seeking to lock in fixed rates with a clear long-term planning tool. Those considering rate-and-term refinances should evaluate current rates against existing mortgage terms to assess potential monthly payment savings or interest cost reductions.
Understanding Money’s Rate Methodology
Money’s daily mortgage rate reporting reflects real-world borrowing conditions by capturing rates offered by over 8,000 lenders across the United States. These rates represent what borrowers with average credit profiles—specifically a 700 credit score and 20% down payment—might expect to secure on December 22, 2021, the most recent business day for which rates were available.
The reported rates include discount points and accurately reflect typical borrowing scenarios for credit-qualified applicants. This methodology ensures relevance for the median borrower rather than presenting best-case scenarios available only to the most creditworthy applicants. Freddie Mac’s weekly rates, by contrast, typically appear lower because they survey rates offered to borrowers with higher credit scores, creating a methodological distinction that borrowers should understand when comparing different rate sources.
Expert Outlook: Future Rate Expectations
Despite three consecutive days of rate increases, market experts maintain optimistic perspectives on the mortgage environment. Projections indicate that while rates will likely continue rising, the increases will occur gradually rather than dramatically. Rates should remain near historically low levels through the first half of 2022, with only modest increases expected later in the year.
This measured outlook suggests that borrowers contemplating home purchases or refinancing activities face a favorable window for securing financing. Even as rates gradually increase from current levels, the projected progression allows time for deliberate decision-making without the urgency typically associated with rapid market deterioration.
Lock in Your Rate: Critical Final Step
Once borrowers identify the appropriate rate, loan product, and lender, rate locking becomes essential. A rate lock guarantees that the mortgage rate won’t increase between the lock date and loan closing, protecting borrowers from unfavorable rate movements during the underwriting and closing process. This safeguard proves invaluable in volatile rate environments or when closing timelines extend beyond a few weeks.
Borrowers should discuss lock options, lock expiration dates, and any associated costs or conditions with their lender. Understanding these details prevents surprises and ensures that the finalized closing rate matches the quoted locked rate.
Frequently Asked Questions
Q: Why did mortgage rates increase on December 23, 2021?
A: Mortgage rates increased as part of a three-day upward trend driven by broader economic factors and market conditions. The Federal Reserve’s monetary policy stance, inflation concerns, and bond market movements influence daily rate changes.
Q: Are current rates still historically low?
A: Yes. Despite recent increases, rates remain very low historically. The 3.653% rate on 30-year mortgages represents favorable financing compared to long-term historical averages, which have frequently exceeded 6% or higher.
Q: Should I lock my rate immediately?
A: If you’ve found an acceptable rate, loan product, and lender, locking becomes wise to prevent future rate increases. However, consider your timeline to closing and lock expiration terms before making this decision.
Q: What’s the difference between a 30-year and 15-year mortgage?
A: A 30-year mortgage features lower monthly payments but higher lifetime interest costs. A 15-year mortgage requires higher monthly payments but builds equity faster and costs significantly less in total interest over the loan’s life.
Q: Are ARM mortgages a good option now?
A: ARMs offer lower initial rates but carry future rate adjustment risk. They suit borrowers planning shorter homeownership periods or comfortable with eventual rate increases. Compare ARM terms carefully, including adjustment caps and frequencies.
Q: Can I get better rates with a larger down payment?
A: Generally yes. Larger down payments reduce lender risk and often qualify for better rates. A 20% down payment typically receives favorable rates compared to lower down payment scenarios.
References
- Today’s Mortgage Rates Rise | December 23, 2021 — Money. 2021-12-23. https://money.com/todays-mortgage-rates-december-23-2021/
- Primary Mortgage Market Survey — Freddie Mac. 2025-11-26. https://www.freddiemac.com/pmms
- 30-Year Fixed Rate Mortgage Average in the United States — Federal Reserve Economic Data (FRED). St. Louis Federal Reserve. https://fred.stlouisfed.org/series/MORTGAGE30US
- Mortgage Rate History: 1970s To 2025 — Bankrate. 2025-11-01. https://www.bankrate.com/mortgages/historical-mortgage-rates/
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