Mortgage

Mortgage and refinancing charges at the moment, December 31, 2020

Today's mortgage and refinance rates

Happy New Year! Yesterday, like a honeymoon couple, average mortgage rates stayed at their all-time lows. They have stayed tight over the past few weeks.

And there's little reason to believe that will change now, especially with the bond markets having a half-day vacation. In my opinion Mortgage rates are likely to remain stable today or hardly move.

We're taking off tomorrow because the markets are closing. But we'll be back on Saturday with our weekend edition.

Find and block a low rate (December 31, 2020)

Current mortgage and refinancing rates

program
Mortgage rates
APR *
change
Conventional 30 years fixed
2.75%.
2.75%.
Unchanged
Conventional 15 years fixed
2,438%.
2,438%.
Unchanged
Conventional 5-year ARM
3%.
2,743%.
Unchanged
Fixed FTA for 30 years
2,308%.
3,284%.
Unchanged
Fixed FTA for 15 years
2,375%.
3,317%.
Unchanged
5 years ARM FHA
2.5%.
3,232%.
+ 0.01%
30 years permanent VA
2.125%.
2.295%.
Unchanged
15 years fixed VA
2.125%.
2,445%.
Unchanged
5 years ARM VA
2.5%.
2,413%.
+ 0.01%
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 31, 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?

I've been saying for a while that if I had a deadline in January I would be banned. And that advice hasn't changed.

It is based on a risk-reward analysis. Yes, it is entirely possible that prices will fall a little this month. However, I doubt such falls will be enough to justify the risk of a surge. In my eyes, it's just not worth the gamble.

And we can definitely see increases. Whether they are meaningful or sustainable will largely depend on the outcome of the Georgian Senate runoff election on January 5. If the Democratic candidates win both seats (and polls indicate), control of the US Senate will pass to their party.

And that will likely lead to more generous pandemic relief measures. The markets will like this, and bond yields and mortgage rates are likely to rise – perhaps by an appreciable amount and for some time.

So my personal recommendations for tariff blocking remain:

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

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 was lower at 0.92% of 0.94%. (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 a little lower When opening. (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 happens when the indices are lower. Oil prices rose as high as $ 48.05 $ 47.85 per barrel. (Neutral for mortgage rates * because energy prices play a major role in causing inflation and also indicate future economic activity.) Gold prices were at $ 1,901 of $ 1,887 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 – Reduced from 50 from 100 to 49. (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 make a pretty good estimate 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 likely to stay the same or move little.

Find and block a low rate (December 31, 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. Refinancing rates are usually close to these 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

I assume that mortgage rates will remain stable today or will hardly rise.

The bond markets are only open for a few hours today. And those rates haven't changed much in weeks. So the chances of any noticeable movement this morning seem slim.

Recently

The general trend in mortgage rates has been falling significantly in recent months. Freddie Mac has hit 16 new weekly all-time lows so far this year.

The last such record was set on December 24th. And this morning Freddie reported that his weekly number was showing the average an imperceptible amount higher.

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 December 15) and the MBA (published December 21) 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
Q4 / 20
Q1 / 21
Q2 / 21
Q3 / 21
Fannie Mae
2.8%
2.7%
2.7%
2.8%
Freddie Mac
3.0%
3.0%
3.0%
3.0%
MBA
2.8%
2.9%
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 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 (December 31, 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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