Mortgage

Mortgage and refinancing charges right now, December 22, 2020

Today's mortgage and refinance rates

Average mortgage rates rose yesterday, but only by the smallest measurable amount. Many will still be able to hit their all-time lows.

Yesterday's news of a fast-spreading new strain of COVID-19 in the UK cut mortgage rates this morning. But it didn't hold her down for long. This morning the markets are calm. And I expect this Prices are unchanged or hardly changed.

Find and Block a Low Rate (December 23, 2020)

Current mortgage and refinancing rates

program
Mortgage rates
APR *
change
Conventional 30 years fixed
2,688%.
2,688%.
Unchanged
Conventional 15 years fixed
2.25%.
2.25%.
Unchanged
Conventional 5-year ARM
3%.
2,743%.
Unchanged
Fixed FTA for 30 years
2.25%.
3.226%.
+ 0.06%
Fixed FTA for 15 years
2.125%.
3.065%.
Unchanged
5 years ARM FHA
2.5%.
3.22%.
Unchanged
30 years permanent VA
2.125%.
2.295%.
Unchanged
15 years fixed VA
2.063%.
2,382%.
Unchanged
5 years ARM VA
2.5%.
2,399%.
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 23, 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?

Stop! Yesterday I was wondering if news of a novel strain of contagious COVID-19 would scare investors and cut mortgage rates noticeably.

But that does not seem to be the case. Of course, it's possible that slowly realizing the effects of the virus will ultimately lead to lower rates. So far, however, this is not likely.

So we come back to the weekend council. And that goes for most of the people with January close dates who now need to lock up while interest rates are at or near record lows. Yes, it is possible that you will miss further falls. But personally I think these are likely limited and not worth the risk of going up.

So my personal recommendations for the tariff lock 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, 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 held at 0.93%. (Neutral for mortgage ratesMore than any other market, mortgage rates usually tend to follow these particular government bond yields, albeit more recentlyImportant stock indices were mixed when opened. (Neutral 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 fell from $ 47.07 $ 47.24 per barrel. (Neutral for mortgage rates * because energy prices play a major role in causing inflation and also indicate future economic activity.) Gold prices barely moving to $ 1,879 $ 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 – Increased from 62 from 100 to 64. (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 quietly for mortgage rates today.

Find and Block a Low Rate (December 23, 2020)

Important Notes About Today's Mortgage Rates

Here are some things you need to know:

The continued Fed interventions 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 going on, 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

So far the markets look calm this morning. And I expect Mortgage rates should remain unchanged or hardly changed today.

If the scary new breed of superspreading COVID-19 didn't cut mortgage rates yesterday, it may never do so. Or perhaps it was exerting downward pressure, but it was offset by upward pressure resulting from the passage of pandemic relief measures by Congress.

Either way, until this morning the markets look pretty directionless. And the vacation doldrums I predicted could be upon us, barring exceptionally good or bad news.

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 already been reached 15 times this year. The last recording of this type was last week – December 17th.

Expert Mortgage Rate Predictions – 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 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 (yesterday – December 21st) are updated monthly. But 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%
2.7%
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 refinancing, 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 may 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 23, 2020)

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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