Today's mortgage and refinance rates
Average mortgage rates had a good week last week with another small drop on Friday. You're now 10 or 11 basis points (one basis point is one hundredth of a percent) above the all-time low. But that's still an exceptionally good rate.
Judging from the markets this morning it looks like it is Mortgage rates could have a quiet day todayHold still or just move to either side of the neutral line. But of course that could change over the course of the hours.
Find and Lock a Low Rate (Jan 20, 2021)
Current mortgage and refinancing rates
Conventional 30 years fixed
Conventional 15 years fixed
Conventional 5-year ARM
Fixed FTA for 30 years
Fixed FTA for 15 years
5 years ARM FHA
30 years permanent VA
15 years fixed VA
5 years ARM VA
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 20, 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?
We are still in a position where it is impossible to see how mortgage rates are moving. Currently, conflicting forces are acting on her (see below for details), one pushing her higher and the other pulling her lower. And nobody knows who will win.
We are therefore unusually unsure of what to expect in the coming weeks and months. But for now, my personal recommendations on tariff lock that are just my guesses are:
LOCK when you approach 7th DaysLOCK when you approach 15th DaysLOCK when you approach 30th DaysHOVER when you approach 45 DaysHOVER 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's a snapshot of the current status this morning at 9:50 a.m. (ET). The dates, compared to roughly the same time last Friday morning, were:
The 10-year Treasury yield held constant at 1.11%. (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 opened. (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 is true when the indices are lower. Oil prices fell from 52.83 to 52.83 $ 52.89 per barrel. (Neutral for mortgage rates * because energy prices play a major role in causing inflation and also indicate future economic activity.) Gold prices poked at $ 1,836 of $ 1,842 per ounce. (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 – Decreased from 63 to 61 from 100. (Good for mortgage interest.) "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 with this caveat, So far, mortgage rates are likely to remain unchanged today or change little.
Find and Lock a Low Rate (Jan 20, 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 and so on
I expect mortgage rates will hardly change today. But that could change over the course of the hours.
What are these conflicting forces mentioned above? Well, last week has been the pandemic that continues to cause serious damage to the economy. And weak economies almost always have low interest rates.
The other force is the likelihood of higher government debt under in-depth administration. This is a little more complicated and includes the effect of supply and demand in the bond markets on prices and returns. Suffice it to say, additional credit tends to increase US Treasury bond yields – and raise mortgage rates.
Unfortunately, no one can predict with certainty which of these forces will ultimately prove to be stronger. We can be pretty sure that once vaccines turn the tide of the pandemic and bring the economy back to normal, mortgage rates will rise.
But that will likely be several months in the future. And in the meantime, all we can do is watch the two forces struggle for their advantage.
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 most recent record of this species was on January 7th. However, this was already overtaken by the events before it was published. And prices are now significantly higher, as confirmed by Freddie's last announcement on January 14th.
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).
Fannies were released on January 15th, Freddies on January 14th, and the MBA on December 21st. The numbers in the table below are for 30-year fixed rate mortgages:
Q1 / 21
Q2 / 21
Q3 / 21
Q4 / 21
However, with so many unknowns, the current number of predictions can be even more speculative than usual.
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 (January 20, 2021)
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.