Mortgage and refinance charges right this moment, December 4th, and rate of interest forecast for subsequent week

Today's mortgage and refinancing rates

Average mortgage rates fell just inches yesterday. Overall, as I predicted, they fell this week.

But I was lucky. and Mortgage rates are inherently unpredictable at the moment. They depend to a large extent on data on the Omicron variant of COVID-19. And they only appear at the beginning. So the rates could be pushed either way, depending on the conclusions scientists draw from these data.

Find and lock a cheap rate (December 5, 2021)

Current mortgage and refinancing rates

Mortgage rates
Effective interest rate*

Conventional 30 years

Conventionally fixed for 15 years

Conventional 20 years old

Conventionally fixed for 10 years

30 years permanent FHA

Fixed FTA for 15 years


30 years of permanent VA

15 years fixed VA
+ 0.14%

5/1 ARM-VA

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

Find and lock a cheap rate (December 5, 2021)

Should You Lock A Mortgage Rate Today?

If you are financially careful, you can get your mortgage rate today. These prices don't look bad right now. And there is a real chance that they will rise.

However, if you enjoy gambling – and believe that the Omicron variant of COVID-19 is likely to cause serious harm to the economy – you will likely want to keep raising your interest rate.

In all honesty, I can't give better guidance simply because neither I nor anyone else can be sure how harmful Omicron will be. More on this below.

Earlier this week I changed my personal rate lock recommendations to reflect what appeared to be a real threat to Omicron at the time. But maybe I can change it again soon.

Still, for the time being, these recommendations are:

HOVER when close in 7th DaysHOVER when close in fifteen DaysHOVER when close in 30th DaysHOVER when close in 45 DaysHOVER when close in 60 Days

With so much uncertainty right now, however, your instincts could turn out to be as good as mine – or better. So let your gut instinct and your personal risk tolerance guide you.

What is moving the current mortgage rates

It's still all about Omicron – for now. And two possible and competing narratives seem to emerge. Compared to other variants, including Delta:

There are first signs that Omicron is spreading faster. But nobody has died from it yet. And it can lead to milder symptoms and far fewer hospitalizations and deaths. If so, this could be the beginning of the end for COVID-19, as the new variant displaces Delta and all other more dangerous variants and reduces the damage caused by the harmful disease. There are now signs that vaccinations and previous infections are less protective. So COVID-19 could be a lot worse this winter than last

However, the World Health Organization (WHO) pours cold water into these two narratives. "We're going to get the answers everyone out there needs," said WHO Emergency Director Michael Ryan yesterday. But it could be weeks before this information emerges.

And the WHO's latest Omicron update says, "It is not yet clear whether Omicron is more transmissible … It is not yet clear whether infection with Omicron causes more severe illness compared to infections with other variants, including Delta."

Where Omicron has arrived

So we just have to wait. The Omicron variant is now spreading. Yesterday it was in 38 countries. Cases have been reported in the following US states:

California Colorado Hawaii Maryland Minnesota Missouri Nebraska New Jersey New York Pennsylvania Utah

So it looks pretty sure that Omicron will be near you soon. But we have no idea whether to find this scary or comforting.

What that means for mortgage rates

Reuters reported yesterday: "The International Monetary Fund will likely lower its estimates for global economic growth because of the new Omicron variant." But probably only if the variant proves to be sufficiently harmful to trigger a new wave of economically harmful measures.

Steps like bans, school closings, increased work from home, and travel restrictions and social mixing are likely to slow or reverse economic recovery. But we cannot yet be sure that they are necessary.

If so, mortgage rates are likely to fall, perhaps to new all-time lows. If not, the recovery should continue and upward pressure on these rates will be in full swing. That includes persistent warm inflation. And higher interest rates on all types of borrowing sooner than many expect.

Economic reports next week

The monthly employment report was published yesterday. Many currently consider it to be the most important economic report of all. And yet the markets hardly reacted to it.

The headline count (the number of jobs added to non-farm payrolls) was much lower than expected. And you would normally expect mortgage rates to go down noticeably because of this news.

There are two possible explanations for why they didn't. First, many of the other numbers on the report were pretty good. Or second, investors are too focused on the potential impact of the Omicron variant to pay much attention to the passing historical data, no matter how important it usually is.

If the latter is the case, next week's reports may receive similar neglect. But if it is the former, we may see some reactions on the more important ones, which cover inflation and employment.

The main ones below are in bold. But none of the other economic reports listed below are likely to cause much movement in the markets unless it includes shockingly good or bad data:

Tuesday – 3rd quarter productivity and unit labor costs (revisions) Wednesday – October Job offers and Job quitsThursday – Weekly new claims for unemployment insurance until December 4th, Friday to November Consumer price index and Core inflation. Plus the first reading of the consumer sentiment index from December and "expected inflation over the next five years"

Wednesday and Friday can be the key days – if at all.

Find and lock a cheap rate (December 5, 2021)

Mortgage rates forecast for next week

Mortgage rates are unpredictable next week. Sorry for the cop-out. But they are easy.

Mortgage and refinancing rates usually move in parallel. And a gap that had grown between the two was largely closed with the removal of the disadvantageous market refinancing fee.

Meanwhile, another regulatory change recently has likely made investment property and vacation rental mortgages more accessible and less expensive.

This is how your mortgage rate is determined

Mortgage and refinance rates are generally determined by prices on a secondary market (similar to the stock or bond markets) that trade mortgage-backed securities.

And that depends heavily on the economy. So mortgage rates are typically high when things are going well and low when the economy is in trouble.

Your part

But you play a huge role in determining your own mortgage rate in five ways. And you can significantly affect it by:

Rummage For Your Best Mortgage Rate – They Vary A Lot From Lender To LenderImprove Your Credit – Even A Small Boost Can Make A Big Difference To Your Rate And PaymentsSave The Biggest Down Payment You Can – Lenders Like You To Be Real In This Game Keeping your other borrowing modest – the lower your other monthly obligations, the higher the mortgage you can affordChoose your mortgage wisely – you are better off with a conventional, FHA, VA, USDA, jumbo or other loan ?

The time you spend getting these ducks in a row can result in you winning lower prizes.

Remember, it's not just a mortgage rate

Make sure to count all of your upcoming home costs when considering the size of a mortgage that you can afford. So concentrate on your "PITI". This is yours P.rincipal (pays back the amount borrowed), IInterest (the price of borrowing), (property) TAxles and (homeowners) IInsurance. Our mortgage calculator will help you with this.

Depending on your mortgage type and the amount of your down payment, you may also need to pay for mortgage insurance. And that can easily reach three digits every month.

But there are other potential costs as well. So you have to pay homeowners association contributions if you choose to live with an HOA. And wherever you live, you have to expect repair and maintenance costs. There's no landlord to call if something goes wrong!

After all, it's hard to forget about closing costs. You can see this in the specified annual percentage rate (APR). Because this effectively spreads them over the term of your loan so that it is higher than your pure mortgage interest.

But you may be able to get help with these closing costs and your down payment, especially if you are a first-time buyer. Read:

Down payment assistance programs in each state for 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. By averaging a number of prices, this 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 result is a good snapshot of the daily rates and how they change over time.

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