Mortgage

Mortgage and refinancing charges as we speak, 9/23/2021

Today's mortgage and refinancing rates

Average mortgage rates rose just inches yesterday. So we dodged a bullet when the Federal Reserve decided yesterday to kick their can a little lower.

Unfortunately, it looks like it is Mortgage rates can go up again today.

Find and lock a cheap rate (September 23, 2021)

Current mortgage and refinancing rates

program
Mortgage rates
Effective interest rate*
Change

Conventional 30 years
3.02%
3,034%
+ 0.02%

Conventionally fixed for 15 years
2,369%
2,394%
Unchanged

Conventional 20 years old
2,844%
2,876%
Unchanged

Conventionally fixed for 10 years
2,285%
2,339%
Unchanged

30 years permanent FHA
3,013%
3.77%
Unchanged

Fixed FTA for 15 years
2.406%
3,048%
Unchanged

5/1 ARM FHA
2.224%
2,995%
+ 0.02%

30 years of permanent VA
2,866%
3,057%
+ 0.03%

15 years fixed VA
2.61%
2,958%
Unchanged

5/1 ARM-VA
2,437%
2,277%
+ 0.01%

Prices are provided by our partner network and may not reflect the market. Your rate can be different. Click here for an individual price offer. View our rate assumptions here.

Find and lock a cheap rate (September 23, 2021)

COVID-19 Mortgage Updates: Mortgage lenders are changing interest rates and rules due to COVID-19. Click here to learn how the coronavirus could affect your home loan.

Should You Lock A Mortgage Rate Today?

With yesterday's Fed events, we can relax a little – but only for a moment. We are facing another sticking point on October 8th, another in mid-October and a third on November 3rd. Please see below for details.

Since these three sticking points come in quick succession, I would exercise caution when it comes to varying your course.

So my personal rate lock recommendations are:

LOCK when close in 7th DaysLOCK when close in fifteen DaysLOCK when close in 30th DaysLOCK when close in 45 DaysLOCK when close in 60 Days

However, I am not claiming perfect foresight. And your personal analysis could be as good as mine – or better. So let your instincts and your personal risk tolerance guide you.

Market Data Affecting Mortgage Rates Today

Here's a snapshot of what was now this morning at around 9:50 a.m. ET. The dates, compared to about the same time yesterday, were:

the 10 year Treasury note yield climbed from 1.33% to 1.37%. (Bad for mortgage rates.) More than any other market, mortgage rates usually follow these particular government bond yields
Important stock indices were higher after opening. (Bad for mortgage rates.Often times, when investors buy stocks, they sell bonds, which depresses the prices of those stocks and increases yields and mortgage rates. The opposite can happen when the indices are lower
Oil prices elevated to $ 72.59 from $ 71.75 a barrel. (Bad for mortgage rates *.) Energy prices play a huge role in creating inflation and also indicate future economic activity.
Gold prices fell to $ 1,753 from $ 1,777 an 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 and Greed Indexincreased from 25 to 31 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. So lower values ​​are better than higher ones

* A change of less than $ 20 in gold prices or 40 cents in oil prices is a fraction of 1%. Therefore, when it comes to mortgage rates, we only count meaningful differences as good or bad.

Reservations about markets and prices

Before the pandemic and the Federal Reserve's interventions in the mortgage market, you could look at the numbers above and make a pretty good guess as to what would happen to mortgage rates that day. But that is no longer the case. We still use the phone every day. And they are mostly right. But our records for accuracy will not reach its previous high levels until things settle down.

Use markets as a rough guide only. Because they have to be extraordinarily strong or weak to be able to rely on them. But with this restriction so far Mortgage rates are likely to rise today. Note, however, that "intraday swings" (when prices change direction during the day) are a common feature these days.

Find and lock a cheap rate (September 23, 2021)

Important information about current mortgage rates

Here are some things you need to know:

Usually mortgage rates go up when the economy is doing well and go down when the economy is in trouble. But there are exceptions. Reading & # 39;How Mortgage Rates Are Determined and Why You Should Care About It
Only “top notch” borrowers (with great credit scores, high down payments, and very healthy finances) will get the extremely low mortgage rates you see advertised
Lenders vary. Yours may or may not follow the crowd when it comes to daily price action – though they usually all follow the broader trend over time
When the daily price changes are small, some lenders adjust closing costs and leave their price lists unchanged
The refinancing rates are usually close to those for purchases. And a recent regulatory change has closed a pre-existing loophole

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 forth

Mortgage rates can be relatively quiet for a while, although things are not looking so good this morning. But it wouldn't be a surprise if it was just a matter of days. Investors can see the wind blowing before they even hit the sticking points mentioned above.

Sticking points

Those are:

Oct 8 – The next employment report is due. Yesterday the Fed said it would withdraw its support for low mortgage rates on November 3rd unless that report was bad. Markets know this and could respond with higher interest rates if they don't. On the other hand, interest rates could fall a little if that is the case.
Mid-October – This is when the U.S. government runs out of money for all expenses, including debt payments – unless Congress increases the debt ceiling. The US has never defaulted on its borrowing. When this happens (or is about to happen) the consequences can be more than severe. And that goes for low mortgage rates too
Nov. 3 – Then the Federal Reserve's monetary policy body, the Federal Open Market Committee (FOMC), next issues a post-meeting statement and holds a press conference. Yesterday it signaled that it would begin scaling back its easy money policies (including the one that is currently keeping mortgage rates low) as no disastrous employment report was released on October 8th.

All of that crammed into the next six weeks. And if any of this goes wrong for those of us who like low mortgage rates, it could have dire consequences.

How bad is everyone's guess. But we could see moderately higher or significantly higher mortgage rates.

Right now there is little on my radar that could counteract these forces or even result in lower rates. Of course, something can always come out of it. But it doesn't look likely.

Recently – Updated today

The general trend in mortgage rates was clearly declining for much of 2020. And according to Freddie Mac, a new weekly all-time low was hit 16 times in the past year.

The most recent weekly record low was recorded on January 7th when it was 2.65% for 30-year fixed-rate mortgages. But then the trend was reversed and interest rates rose moderately.

However, in April and beyond, these increases were largely replaced by decreases, albeit typically small. And interest rates have barely moved lately. Freddies September 23rd Report puts this weekly average at 2.88% (with 0.7 fees and points), high compared to 2.86% the previous week.

Expert predictions for mortgage rates – Updated today

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

And here are their current interest rate forecasts for the remaining quarters of 2021 (Q3 / 21 and Q4 / 21) and the first two quarters of 2022 (Q1 / 22 and Q2 / 22).

The numbers in the table below apply to 30-year fixed-rate mortgages. Fannies were updated on September 20th and the MBAs updated on September 22nd. But Freddies were last updated on July 15th as these numbers are now only released quarterly. And his forecast looks seriously stale.

Forecasters
Q3 / 21
Q4 / 21
Q1 / 22
Q2 / 22

Fannie Mae
2.9%
2.9%
3.0%
3.1%

Freddie Mac
3.3%
3.4%
3.5%
3.6%

MBA
2.8%
3.1%
3.4%
3.6%

However, with so many imponderables, all of the current projections could be even more speculative than usual.

All of these predictions anticipate higher mortgage rates soon or soon. But the differences between the forecasters are stark. And Fannie may not be involved in curbing Federal Reserve mortgage support while Freddie and the MBA do. Or maybe Fannie thinks the tapering will have little effect.

Find your lowest price today

Some lenders have been terrified by the pandemic. And they are limiting their offerings to vanilla-flavored mortgages and refinancing.

But others remain brave. And you can still probably find the refinance, investment mortgage, or jumbo loan you want. All you have to do is look around.

But of course, no matter what type of mortgage you want, you should compare widely. As a federal regulator, the Consumer Financial Protection Bureau says:

Shopping for your mortgage has the potential to result in real savings. It may not sound like much, but if you save a quarter point on interest on your mortgage, you will save thousands of dollars over the life of your loan.

Confirm your new price (September 23, 2021)

Mortgage rate methodology

The mortgage reports receive interest rates based on selected criteria from multiple credit partners on a daily basis. We'll find an average interest rate and an APR for each type of loan shown on our chart. Since we average a range of prices, it will give you a better idea of ​​what you might find in the market. In addition, we determine average interest rates for the same types of credit. Example: FHA fixed with FHA fixed. The end result is a good snapshot of the daily rates and how they change over time.

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