Mortgage

Mortgage and refinance charges at present, December 11, 2020

Today's mortgage and refinance rates

Average mortgage rates fell slightly yesterday, bringing them back to Wednesday's record low.

We can see again lower mortgage rates today. However, that depends on politicians still disagreeing on a pandemic stimulus package (or bailout). If they agree, rates could go up.

Find and Block a Low Rate (December 11, 2020)

Current mortgage and refinancing rates

program
Mortgage rates
APR *
change
Conventional 30 years fixed
3%.
3%.
Unchanged
Conventional 15 years fixed
2,688%.
2,688%.
Unchanged
Conventional 5-year ARM
3%.
2,743%.
Unchanged
Fixed FTA for 30 years
3%.
3,982%.
+ 0.88%
Fixed FTA for 15 years
2.125%.
3.065%.
Unchanged
5 years ARM FHA
2.5%.
3.226%.
Unchanged
30 years permanent VA
2.875%.
3,053%.
+ 0.06%
15 years fixed VA
1,875%.
2,193%.
-0.13%
5 years ARM VA
2.5%.
2.406%.
Unchanged
Prices are provided by our partner network and may not reflect the market. Your rate could be different. Click here for a personalized price offer. See our tariff assumptions here.

Find and Block a Low Rate (December 11, 2020)

COVID-19 Mortgage Updates: Mortgage lenders are changing interest rates and rules due to COVID-19. For the latest information on the impact of Coronavirus on your home loan, click here.

Should You Lock A Mortgage Rate Today?

With mortgage rates this low, you can now choose to lock yours. After all, you are getting a historically amazing offer. And no one can guarantee that they will continue to decline.

However, I think falls that continue to outweigh the climbs are the most likely scenario for some time. So you may get an even better deal if you wait longer to be locked.

If you're looking to take that risk, you should probably pick a good day to lock out a couple of weeks before closing. That's because occasional climbs are inevitable. And you don't want to find yourself in any of them.

See “Are Mortgage and Refinance Rates Going Up or Down?” (Below) for more details. In the meantime, my personal recommendations on tariff blocking are:

LOCK when you approach 7th DaysLOCK when you approach 15th DaysHOVER when you approach 30th DaysHOVER when you approach 45 DaysHOVER when you approach 60 Days

But with so much uncertainty right now, your instincts could easily turn out to be as good as mine – or better. So let your gut and your personal risk tolerance guide you.

Market Data Affecting Mortgage Rates Today

Here is the current status at 9:50 a.m. (ET) this morning. The dates, compared to roughly the same time yesterday morning, were:

The 10-year Treasury yield fell from 0.92% to 0.88%. (Good for mortgage ratesMore than any other market, mortgage rates usually tend to follow these particular government bond yields, albeit more recentlyImportant stock indices were lower when opened. (Good for mortgage rates.Often times, when investors buy stocks, they sell bonds, which lowers the prices of those bonds and increases yields and mortgage rates. The opposite is true when the indices are lower. Oil prices were virtually unchanged at $ 46.79 versus $ 46.72 a barrel. (Bad for mortgage rates * because energy prices play a major role in causing inflation and also indicate future economic activity.) Gold prices fell from $ 1,852 an ounce to $ 1,840. (Neutral for mortgage rates*.) In general, it is better for interest rates when gold rises and worse for interest rates when gold falls. Gold tends to rise when investors worry about the economy. And worried investors tend to cut rates. CNN Business Fear & Greed Index – Increased from 75 to 76 from 100. (Bad for mortgage rates.) "Greedy" investors push bond prices down (and interest rates up) when they exit the bond market and invest in stocks, while "fearful" investors do the opposite. Lower readings are therefore better than higher ones

* A change of less than $ 20 in gold prices or 40 cents in oil prices is a fraction of 1%. Hence, we count significant differences in mortgage rates only as good or bad.

Reservations about markets and prices

Before the pandemic and the Federal Reserve's intervention in the mortgage market, you could look at the numbers above and get a pretty good idea of ​​what would happen to mortgage rates that day. However, this is no longer the case. The Fed is a big player now and a few days can overwhelm investor sentiment.

Use markets only as a rough guide. They have to be exceptionally strong (rates are likely to rise) or weak (they could fall) to be relied on. But so far they have been searching with this restriction OK for mortgage rates today.

Find and Block a Low Rate (December 11, 2020)

Important Notes About Today's Mortgage Rates

Here are some things you need to know:

The continued intervention of the Fed in the mortgage market (well over $ 1 trillion) should continue to put pressure on these rates. But it can't always work miracles. So expect both short-term increases and decreases. And read: “For once, the Fed affects mortgage rates. Here's why: "If you want to understand this aspect of what is happening, mortgage rates usually go up when the economy is doing well and go down when they're in trouble." There are exceptions, however. Read about how mortgage rates are determined and why you should care. Only top notch borrowers (with great credit scores, high down payments, and very healthy finances) will get the ultra-low mortgage rates for which the listed lenders vary. Yours may or may not follow the crowd when it comes to daily interest rate movements – though they usually all follow the broader trend over time. When interest rate changes are small, some lenders adjust closing costs and leave their interest rate cards the same for purchases. However, some types of Fannie Mae and Freddie Mac refinancing are currently significantly higher after a change in regulations

So there is a lot going on here. And no one can claim to know for sure what will happen to mortgage rates in the coming hours, days, weeks, or months.

Are mortgage and refinancing rates rising or falling?

today

It is difficult to find reasons for economic optimism right now. So I do the math Mortgage rates could fall again today. However, this assumes that the politicians on Capitol Hill make no real progress in agreeing a stimulus package in the coming hours.

The Greenlighting of the Pfizer vaccine yesterday by the Food and Drug Administration gives cause for optimism. However, by the second half of 2021, few experts expect vaccinations to have a major impact on public health. In the meantime, the pandemic itself continues to intensify, with some predicting the worst is yet to come.

So there is a lot of economic (and personal) pain to endure before the vaccine makes a real difference. As yesterday's bad unemployment figures showed.

Worse, the pandemic is not the only source of darkness. A government shutdown is due one week today without politicians doing anything.

And a crippling no-deal Brexit (Britain's exit from its membership of the European Union) is likely today. The economic consequences are likely to have an impact across the Atlantic. While the impact will be much less severe here, it will add downward pressure on mortgage rates.

Recently

The general trend in mortgage rates has been falling significantly in recent months. According to Freddie Mac, a new weekly all-time low has been set 14 times this year. The most recent such record was set on December 3rd. On December 10th, Freddie Mac reported: "Mortgage rates remain at record lows."

Mortgage Forecast Experts

Looking ahead, Fannie Mae, Freddie Mac, and the Mortgage Bankers Association (MBA) each have a team of economists devoted to monitoring and forecasting the impact on the economy, housing and mortgage rates.

And here are their current interest rate forecasts for the final quarter of 2020 (Q4 / 20) and the first three of 2021 (Q1 / 21, Q2 / 21 and Q3 / 21).

Note, however, that fannies (published November 17th) and the MBA (also November 17th) are updated monthly. However, Freddies are now released quarterly. The latest version was released on October 14th. So this is starting to look stale.

The numbers in the table below are for 30-year fixed rate mortgages:

Forecaster
Q4 / 20
Q1 / 21
Q2 / 21
Q3 / 21
Fannie Mae
2.8%
2.8%
2.8%
2.8%
Freddie Mac
3.0%
3.0%
3.0%
3.0%
MBA
2.9%
3.0%
3.0%
3.2%

So the predictions vary considerably. You pay your money …

And another prognosis

On December 2nd, the National Association of Realtors threw its hat into the forecast ring. It said:

The forecast assumes that mortgage rates will slowly rise towards the end of the last half of 2021 and reach 3.4% by the end of the year.

Find your lowest price today

Some lenders have been terrified by the pandemic. And they only limit their offerings to the most vanilla-flavored mortgages and refinances.

But others remain brave. And chances are you can still find the withdrawal refinance, investment mortgage, or jumbo loan you want. You just need to shop broader.

But of course, no matter what type of mortgage you want, you should do a lot of shopping in comparison. As a federal regulator, the Consumer Financial Protection Bureau says:

Shopping for your mortgage can result in real savings. It might not sound like much, but if you save even a quarter point on your mortgage, you will save thousands of dollars over the life of your loan.

Check your new plan (December 11, 2020)

Mortgage rate method

The mortgage reports receive interest rates based on selected criteria from multiple credit partners on a daily basis. We find an average rate and an annual interest rate for each type of loan that we want to show on our chart. Since we calculate a series of average prices, this will give you a better idea of ​​what you might find in the market. We also calculate average interest rates for the same types of loans. For example, FHA was fixed with FHA. The end result is a good snapshot of the daily rates and how they change over time.

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