Mortgage

Mortgage and Refinance Charges As we speak April 14, 2021

Today's mortgage and refinance rates

Average mortgage rates fell again yesterday. And that means we haven't seen a surge since the end of March.

Mortgage-backed securities (the bonds that actually set those rates) were a little worse this morning. But they were like this in the last hours of the morning, only to fall back later. So we'll say that Mortgage rates are likely to remain stable or lower today.

Find and lock a low rate (April 16, 2021)

Current mortgage and refinancing rates

program
Mortgage rates
APR *
change

Conventional set for 30 years
3,002%.
3,008%.
-0.12%

Conventional 15 years fixed
2,375%.
2,493%.
-0.03%

Conventional set for 20 years
2.875%.
2.967%.
-0.03%

Conventional 10 years fixed
1.85%.
2.08%.
-0.05%

Fixed FTA for 30 years
2.751%.
3,409%.
-0.13%

Fixed FTA for 15 years
2,623%.
3,208%.
-0.06%

5 years ARM FHA
2.5%.
3,201%.
Unchanged

30 years permanent VA
2,375%.
2.547%.
-0.13%

15 years fixed VA
2.25%.
2.571%.
Unchanged

5 years ARM VA
2.5%.
2,379%.
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 (April 16, 2021)

COVID-19 Mortgage Updates: Mortgage lenders are changing interest rates and rules due to COVID-19. For the latest information on how coronavirus is affecting your home loan, click here.

Should You Lock A Mortgage Rate Today?

While all of my lock-in recommendations are "lock", it doesn't necessarily mean you have to do it on days when interest rates are falling or remaining stable.

I have to keep it locked to be safe. Many readers only occasionally monitor mortgage rates. And some are unwilling to lock in even if rates go up again. So my intention is to signal that you must be ready to act the moment it becomes necessary again.

If I had just any idea when prices would go up again, I'd adjust my personal tariff lock recommendations to take this into account. But not me. So for the time being they have to stay:

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

But I am not saying that I am completely forward-looking. And your personal analysis could turn out to be as good as mine – or better. So you can be guided by your instincts and your personal risk tolerance.

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 about the same time yesterday, were:

The Return on 10 year treasury decreased from to 1.64% from 1.66% (Good for mortgage rates.) More than any other market, mortgage rates usually tend to follow these particular government bond yields, albeit more recentlyImportant stock indices were mostly 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 lowerOil prices climbed to $ 61.35 from $ 60.21 per barrel. ((Bad for mortgage rates *.Energy prices play a huge role in creating inflation and also indicate future economic activity.) Gold prices nudged lower to $ 1,738 starting at $ 1,748 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 ratesCNN Business Fear & Greed Index – – Edges up to 54 out of 52 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. So lower readings 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%. 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 guess as to what would happen to mortgage rates that day. However, this is no longer the case. We still use the phone every day. And are usually right. However, our record for accuracy will not reach its former high level until things settle down.

Use markets only as a rough guide. Because they have to be exceptionally strong or weak to be relied on. But with this restriction so far Mortgage rates are likely to remain unchanged or lower today. Note, however, that intraday fluctuations (when prices change direction during the day) are a common feature these days.

Find and lock a low rate (April 16, 2021)

Important information about today's mortgage rates

Here are some things you need to know:

Typically, mortgage rates go up when the economy is doing well and go down when they are in trouble. There are exceptions, however. Reading & # 39;How are mortgage rates determined and why should you care?"
Only top notch borrowers (with great credit scores, high down payments, and very healthy finances) will get the ultra-low mortgage rates you see advertised
Lenders vary. Yours may or may not follow the crowd when it comes to daily interest rate movements – though they all usually follow the broader trend over time
When the daily rate changes are small, some lenders adjust closing costs and leave their rate cards the same
The refinancing rates are usually close to those 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

Regular readers will be tired of repeating my belief that the impending economic boom will almost certainly bring higher mortgage rates soon. So today I'm going to let Mortgage News Daily take the load off with its analysis released yesterday:

Danger although. These (recent falls) are small movements by and large. If progress against the pandemic is not rightly derailed, we cannot rely on the good times to stay too long. In fact, this could be as simple as if the market were pausing from the prevailing trend before deciding on the pace and timing of the next move.

– Mortgage News Daily, “Lowest Mortgage Rates in Nearly a Month,” April 13, 2021

Yesterday's March consumer price index release turned out to be a wet igniter. The New York Times reported this morning that the White House assembled a joint team made up of the US Treasury Department and senior advisors to the President. And their job is to determine whether the government's spending plans would "overheat the economy and fuel runaway inflation".

They conclude that these plans will not be implemented. And with that, they agree with the Federal Reserve's analysis. More importantly, markets seem to share this view right now.

For more background on how I continue to think, check out our latest weekend edition, which is published just after 10 a.m. (ET) every Saturday.

Recently

For much of 2020, the general trend in mortgage rates was down significantly. According to Freddie Mac, a new weekly all-time low was hit 16 times in the past year.

The latest weekly record low was recorded on January 7th when 30-year fixed rate mortgages stood at 2.65%. But then the trend was reversed and interest rates rose.

However, according to Freddie's April 8 report, that weekly average is 3.13% (with 0.7 fees and points) compared to 3.18% the previous week. In a press release, Freddie noted, "For seven straight weeks, mortgage rates have fallen due to the recent modest decline in US Treasury bond yields."

Mortgage rate forecasting 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 remaining quarters of 2021 (Q2 / 21, Q3 / 21, Q4 / 21) and the first quarter of 2022 (Q1 / 22).

The numbers in the table below are for a 30-year fixed rate mortgage. Fannies were updated on March 17th and the MBA updated on March 22nd. But Freddie now publishes quarterly forecasts. The numbers are from January 10th and look clearly stale:

Forecaster
Q2 / 21
Q3 / 21
Q4 / 21
Q1 / 22

Fannie Mae
3.1%
3.1%
3.2%
3.3%

Freddie Mac
3.0%
3.0%
3.0%
N / A

MBA
3.2%
3.4%
3.6%
3.7%

However, with so many unknowns, the current number of predictions might be even more speculative than usual. And as the year goes on, the spread is sure to widen.

Find your lowest price today

Some lenders have been terrified by the pandemic. And they limit their offerings to the most vanilla-flavored mortgages and refinances.

But others remain brave. And you can still likely find the withdrawal refinance, investment mortgage, or jumbo loan that you want. You just need to shop broader.

But of course you should do a lot of shopping in comparison, no matter what type of mortgage you want. 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 tariff (April 16, 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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