Mortgage news this week

Mortgage rates rise across the board

Rates on some of the most popular types of mortgages ticked up the week of Feb. 21, according to Bankrate's weekly national survey of large lenders.

The average rate on a 30-year fixed mortgage rose  to 7.13 percent, up from 7.11 percent last week, while the average rate on a 15-year fixed mortgage climbed to 6.55 percent, up from 6.49 percent a week ago.

Blame inflation, which has been stubbornly resistant to the Federal Reserve's war on rising prices. The January inflation number, released Feb. 13, came in at 3.1 percent.

"The disappointing Consumer Price Index reading administered a dose of interest rate reality to investors​​ — the Fed will be slow to cut rates, and it won't happen right away," says Greg McBride, Bankrate's chief financial analyst. "This means interest rates staying higher for longer than was hoped, so bond yields and mortgage rates are recalibrating."

Learn more: Historical mortgage rates

The Fed doesn't directly set mortgage rates, but its monetary policies do influence their direction. Fixed mortgage rates move with the 10-year Treasury yield, while adjustable-rate loans more closely follow the Fed.

Learn more: How the Federal Reserve impacts mortgage rates

Learn more: Weekly mortgage rate trend predictions

Current mortgage and refinance interest rates

How to get the best mortgage rate

Getting the best possible rate on your mortgage can mean a difference of hundreds of extra dollars in or out of your budget each month — not to mention thousands saved in interest over the life of the loan. You won't know what rates you qualify for, though, unless you comparison-shop. Here's how to do it:

1. Determine what type of mortgage is right for you. Consider your credit score and down payment, how long you plan to stay in the home, how much you can afford in monthly payments and whether you have the risk tolerance for a variable-rate loan versus a fixed-rate loan.
2. Compare mortgage rates. There's only one way to be sure you're getting the best available rate, and that's to shop at least three lenders, including large banks, credit unions and online lenders. Bankrate offers a mortgage rates comparison tool to help you find the right rate from a variety of lenders. Keep in mind: Mortgage rates change daily, even hourly, based on market conditions, and vary by loan type and term.
3. Choose the best mortgage offer for you. Bankrate's mortgage calculator can help you estimate your monthly mortgage payment, which can be useful as you consider your budget. Look at the APR, not just the interest rate. The APR is the total cost of the loan, including the interest rate and other fees. These fees are part of your closing costs.

Learn more: How to get a mortgage