Mortgage

Mortgage and refinance charges at the moment, January 7, 2021

Today's mortgage and refinance rates

Average mortgage rates rose yesterday. The rise was the sharpest in some time, but less extreme than feared. And the prices were already so low that they are still incredibly competitive in every way.

Mortgage rates could go up again today. The increase yesterday was slowed by events on Capitol Hill. But it could resume today.

Find and lock a low rate (Jan 8, 2021)

Current mortgage and refinancing rates

program
Mortgage rates
APR *
change
Conventional 30 years fixed
2.808%.
2.808%.
+ 0.06%
Conventional 15 years fixed
2.5%.
2.5%.
+ 0.07%
Conventional 5-year ARM
3%.
2,743%.
Unchanged
Fixed FTA for 30 years
2,438%.
3,415%.
+ 0.19%
Fixed FTA for 15 years
2,313%.
3,253%.
+ 0.06%
5 years ARM FHA
2.5%.
3.226%.
Unchanged
30 years permanent VA
2,245%.
2,417%.
+ 0.12%
15 years fixed VA
2.063%.
2,382%.
+ 0.06%
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 lock a low rate (Jan 8, 2021)

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?

If I was waiting to be closed right now, I would lock up ASAP. Yesterday's climb was less painful than it could have been due to the Capitol Building storm that scared investors. But that's over now.

And the underlying causes of a trend towards higher interest rates remain. Yesterday, Georgia confirmed that both seats in the Senate runoff elections were won by Democratic candidates. And that means the party has a clean grip on both the Houses of Congress and the White House.

This should lead to significantly higher government spending and thus to an increased appetite for government debt in the form of US government bonds. A larger supply of these should lead to higher yields. And mortgage-backed securities (which actually determine mortgage rates) compete with these government bonds. Therefore, mortgage rates should also rise.

We'll have to wait and see how long this effect lasts. But it could take a long time. Other factors – such as the pandemic and the poor employment figures – could contribute to lowering these rates again. However, the effects are uncertain. And you would be brave to place a bet with these odds and stakes.

So prepare for higher mortgage rates. And today I am leaving my recommendations for personal tariff blocking that I changed yesterday:

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

With so much uncertainty right now, however, your instincts could easily prove 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 rose from 1.07% 1.04%. (Bad for mortgage ratesMore than any other market, mortgage rates usually tend to follow these particular government bond yields, albeit more recentlyImportant stock indices were higher When opening. (Bad 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 happens when the indices are lower. Oil prices rose from $ 50.67 $ 50.03 per 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 $ 1,912 $ 1,936 per ounce. (Bad for mortgage ratesIn general, it is better for interest rates when gold rises and worse 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 – Jumped to 65 out of 57 out of 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 probably move higher today.

Find and lock a low rate (Jan 8, 2021)

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. 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. Refinancing rates are usually close to these for purchases. However, some types of refinancing are higher after a regulatory change

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

I expect mortgage rates to rise again today. See above for my reasons.

There is little on the agenda to counter today's likely increase. The Institute for Supply Management's service index and new unemployment insurance entitlements weekly were published. But they would have to have been spectacularly terrible to undermine the uptrend. And they weren't.

But even the official report on tomorrow's employment – arguably the most important economic report in a month right now – will likely have to be disastrous to prevent further increases.

Recently

The general trend in mortgage rates has been falling significantly in recent months. A new weekly all-time low was set 16 times in the past year, according to Freddie Mac.

The latest such record was set today, January 7th. However, that record was for the beginning of the week and has already been overtaken by the events.

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 rate forecasts for each quarter of 2021 (Q1 / 21, Q2 / 21, Q3 / 21 and Q4 / 21).

Note, however, that fannies (published December 15th) and the MBA (December 21st) are updated monthly. But Freddies are now released quarterly. And the newest one was released on October 14th. So this looks downright stale.

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

Forecaster
Q1 / 21
Q2 / 21
Q3 / 21
Q4 / 21
Fannie Mae
2.7%
2.7%
2.8%
2.8%
Freddie Mac
3.0%
3.0%
3.0%
3.0%
MBA
2.9%
3.0%
3.2%
3.2%

So the predictions vary considerably. You pay your money …

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 shop a lot 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 (January 8, 2021)

Mortgage rate method

The mortgage reports receive interest rates based on selected criteria from multiple credit partners on a daily basis. We'll 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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