Metros Where Mortgage Rates Have Increased the Most From Their 2021 Lows
Tendayi Kapfidze is Vice President, Chief Economist at LendingTree. He leads the company’s analysis of the U.S. economy with a focus on housing and mortgage market trends. Tendayi utilizes data analysis to be a resource for both consumers and trade media, providing actionable insights to help consumers make informed financial decisions. He has been quoted in numerous publications including The New York Times, The Wall Street Journal, The Washington Post, USA Today, Yahoo Finance, The Chicago Tribune, The Miami Herald and Reuters and has appeared on CNBC and Cheddar television.
Tendayi has a successful track record as a research professional specializing in macroeconomic and financial analysis. In his most recent role, Tendayi served as Director of Global Economics at Pfizer in New York City. He crafted Pfizer’s view on global macroeconomic trends, advising the executive leadership team on economic and financial risks. Prior to his position at Pfizer, Tendayi served as Director of Economic and Capital Markets Research at Ally Financial and as Vice President and Senior Economic Analyst in the chief investment office at Bank of America.
Tendayi earned his B.S. in Engineering Management at Saint Louis University and his M.S. in Applied Economics from Johns Hopkins University.
- Expertise: Mortgages, homebuying, housing market, personal finance
- Education: University of Georgia
Crissinda Ponder is the mortgage managing editor at LendingTree, where she develops and maintains a range of content related to residential mortgage lending and the homebuying process. Prior to her current role, she served as a senior mortgage writer at LendingTree.
Her background includes serving as a content editor — focused on personal finance and higher education content — with ABUV Media (MoneyGeek.com, HigherEducation.com), and as both a mortgage reporter/analyst and insurance reporter/analyst for Bankrate.com. She has also served as a contributing writer for TheBalance.com, producing content for the site’s mortgage, insurance and savings verticals.
Crissinda earned her B.A. degree in journalism from the Grady College of Journalism and Mass Communication at the University of Georgia.
Why use LendingTree?
Across the United States, mortgage rates have risen from record lows hit in January 2021. Though they’re rising throughout the nation, that doesn’t mean rates have increased by the same amount in every part of the country.
In fact, based on data derived from My LendingTree users in the nation’s 50 largest metropolitan areas, mortgage rates can notably vary from place to place. For example, while some metros have seen mortgage rates increase by as little as 52 basis points from 2021 lows, others have seen increases of as much as 89 basis points.
How much have rates gone up in your metro? Read on to find out.
Key findings
- Rates have increased from their 2021 lows in each of the nation’s 50 largest metros. Though it varies from place to place, the average mortgage rate increase across all metros was about 71 basis points.
- Rates increased the most in San Jose, Calif., San Antonio and Memphis, Tenn. Rates went up by 89 basis points in San Jose, 82 basis points in San Antonio and 81 basis points in Memphis.
- Rates increased the least in Buffalo, N.Y., Minneapolis and New York. Mortgage rates increased by an average of 58 basis points from their 2021 lows across these three metros.
Metros where mortgage rates have increased the most from their 2021 lows
No. 1: San Jose, Calif.
- 2021 mortgage interest rate low: 2.41%
- 2021 mortgage interest rate high: 3.30%
- Difference between high and low rate: 0.89%
No. 2: San Antonio
- 2021 mortgage interest rate low: 2.55%
- 2021 mortgage interest rate high: 3.37%
- Difference between high and low rate: 0.82%
No. 3: Memphis, Tenn.
- 2021 mortgage interest rate low: 2.46%
- 2021 mortgage interest rate high: 3.27%
- Difference between high and low rate: 0.81%
Metros where mortgage rates have increased the least from their 2021 lows
No. 1: Buffalo, N.Y.
2021 mortgage interest rate low: 2.70%
2021 mortgage interest rate high: 3.22%
Difference between high and low rate: 0.52%
No. 2: Minneapolis
2021 mortgage interest rate low: 2.57%
2021 mortgage interest rate high: 3.18%
Difference between high and low rate: 0.61%
No. 3: New York
2021 mortgage interest rate low: 2.48%
2021 mortgage interest rate high: 3.10%
Difference between high and low rate: 0.62%
Increasing rates aren’t all bad news
Put simply, rates are going up because the economy is improving. More and more Americans are being vaccinated and returning to work, which puts upward pressure on mortgage rates as it increases the amount of money that households have and, in turn, their demand for goods like houses.
Fortunately, even if rates are rising, they’re still relatively low from a historical standpoint and not expected to increase by much more throughout the rest of 2021. As a result, there may not be reason for would-be homebuyers to worry about rising rates making mortgages substantially more expensive.
How to get the best rate on your mortgage
While location plays a role in what rates are offered to borrowers, other factors are even more important. As a result, regardless of location, there are many steps that homebuyers can take to get a better rate on their mortgage. Here are just a few examples:
- Shop around for a mortgage before choosing a lender. Even if you have the same financial profile, your loan terms can differ depending on which lender you work with. By shopping around, you can increase your chances of finding the mortgage lender who will offer you the best possible rate and possibly save you tens of thousands of dollars over the lifetime of your loan.
- Work on your credit score. Borrowers with higher credit scores tend to be more appealing to lenders, which means they’re usually offered better rates. If you have a poor score, take steps to improve it by making payments on time and lowering your credit utilization rate, for example.
- Up your down payment. While there are instances where you can get a mortgage without putting any money down, larger down payments tend to result in lower rates. Because of this, the more cash you can save up before deciding to buy a house, the better.
Methodology
LendingTree’s study derived data from 30-year fixed-rate mortgage offers given to My LendingTree platform users across the nation’s 50 largest metropolitan areas, from Jan. 4, 2021, through March 21, 2021. Mortgage interest rates were calculated as weekly averages over a given week, starting on Monday and ending on Sunday.
Metro rankings are based on the difference between the highest and lowest mortgage interest rates of 2021. Metros with larger differences were ranked higher.
For readability, all numbers are rounded to the nearest hundredth place.
LendingTree senior research analyst Jacob Channel contributed to this report.