Mortgage

Mortgage and Refinance Charges In the present day, March 16, 2021

Today's mortgage and refinance rates

Average mortgage rates rose unexpectedly yesterday. But only by the smallest measurable amount, so that the damage was barely noticeable.

Today could be even more unpredictable. This is because the Federal Reserve will answer key questions at a press conference at 2:30 p.m. (ET). And what was said there could push rates sharply either way – or go nowhere. Read on for more.

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

Current mortgage and refinancing rates

program
Mortgage rates
APR *
change

Conventional set for 30 years
3,202%.
3,205%.
+ 0.02%

Conventional 15 years fixed
2.702%.
2.711%.
+ 0.08%

Conventional set for 20 years
3,101%.
3,108%.
Unchanged

Conventional 10 years fixed
2.506%.
2.545%.
Unchanged

Fixed FTA for 30 years
3,001%.
3,683%.
Unchanged

Fixed FTA for 15 years
2,669%.
3,252%.
Unchanged

5 years ARM FHA
2.607%.
3,266%.
+ 0.01%

30 years permanent VA
2.625%.
2.8%.
Unchanged

15 years fixed VA
2.25%.
2.571%.
Unchanged

5 years ARM VA
2.5%.
2.406%.
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 (March 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?

As long as the economic recovery remains on course, the general trend in mortgage rates should continue to rise. Of course, climbs are interrupted with falls. However, I expect the increases to exceed the decreases and are usually larger.

Yes, it is always possible that a major event could affect recovery. But right now it looks a lot less likely than a boom.

So my personal recommendations for tariff blocking remain:

LOCK when you approach 7th DaysLOCK when you approach 15th 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 1.61% to 1.60%. ((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 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 happens when the indices have lower oil prices were lower at $ 64.45, from $ 64.69 per barrel. ((Neutral for mortgage rates *.Energy prices play a huge role in creating inflation and also indicate future economic activity.) Gold prices rose to $ 1,731 from $ 1,727 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 – Rose from 57 out of 100 to 65. (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're still on the phone. 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 look highly unpredictable 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 (March 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 interest rate changes are small, some lenders adjust closing costs and leave their interest 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

Today is an unusual day as a potentially important Fed press conference is scheduled for 2:30 p.m. (ET). These events are not particularly rare. They often follow the meetings of the Fed's main political body, the Federal Open Market Committee (FOMC). And it meets eight times a year.

But this one is unusually important. And investors will be paying close attention to what is being said, both at the press conference and in related documents, which will also be released this afternoon.

Why is it so important? Well, investors are looking forward to the impending economic upswing. However, they fear that this could lead to inflation. And they expect the Fed to protect them from consequential harm to their interests.

If the Fed gave that assurance this afternoon, investors could find it easier to sell long-term fixed income assets like government bonds and mortgage-backed securities. And that could cut mortgage rates or leave them where they are. But if the Fed slows the problem or signals a hard line, they could sell more, which would likely drive those rates higher.

That afternoon's drama

CNBC reported on the potential for drama yesterday:

BlackRock's Rick Rieder said Powell's briefing could be "exciting to see" and the Fed meeting could be the central bank's "March Madness" for markets as the chairman could begin to give some views on the future path of Fed policy reveal.

– CNBC Market Insider – Why This Week's Fed Meeting Could Be March Madness For Markets On March 15, 2021

Retail sales and industrial production for February were worse than expected this morning, partly due to the terrible weather events of that month. And the major government bond yields are a little lower, which is good for mortgage rates. But most markets seem to be keeping their powder dry for this afternoon.

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 hit on January 7th when 30-year fixed rate mortgages stood at 2.65%. But then the prices went up. And Freddie's March 11 report puts that weekly average at 3.05% (with 0.6 fees and points) compared to 3.02% the previous week.

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 each quarter of 2021 (Q1 / 21, Q2 / 21, Q3 / 21 and Q4 / 21).

The numbers in the table below are for a 30-year fixed rate mortgage. Fannies and MBA were updated on February 18th and 19th. But Freddie is now publishing quarterly forecasts and his numbers are from mid-January:

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

Fannie Mae
2.8%
2.8%
2.9%
2.9%

Freddie Mac
2.9%
2.9%
3.0%
3.0%

MBA
2.8%
3.1%
3.3%
3.4%

However, with so many unknowns, the current number of predictions can 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 only 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, 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 (March 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.

Related Articles