Today's mortgage and refinance rates
Average mortgage rates barely moved yesterday and rose only marginally. So they are indistinguishable from their most recent all-time low.
And Mortgage rates could effectively remain stable today. True, Congress appears to be nearing a pandemic relief package. However, it is unlikely to be large or helpful enough to shift these rates far. Hence, any move is likely too small for anyone to care.
Find and block a low rate (December 18, 2020)
Current mortgage and refinancing rates
Conventional 30 years fixed
Conventional 15 years fixed
Conventional 5-year ARM
Fixed FTA for 30 years
Fixed FTA for 15 years
5 years ARM FHA
30 years permanent VA
15 years fixed VA
5 years ARM VA
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 18, 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?
The chances of serious changes in mortgage rates between now and the New Year seem slim. Of course, such risks never go away completely. However, volatility is currently unlikely.
There is likely to be little gain or loss over the next few weeks, whether you keep increasing your course or locking it.
In addition, I suspect that mortgage rates will continue to fall for a few months. But at an Ice Age pace and with occasional (probably short) periods of rise.
Given this (admittedly speculative) scenario, I'll update my personal tariff lock recommendations:
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 fell from 0.93% to 0.90%. (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 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 are lower. Oil prices were higher at $ 48.33 from $ 47.40 per barrel. (Bad for mortgage rates * because energy prices play a major role in causing inflation and also indicate future economic activity.) Gold prices rose from $ 1,898 $ 1,861 per ounce. (Good 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 – was not available this morning. See for yourself. "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 18, 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?
I expect mortgage rates again unchanged today or hardly changed.
An agreement on a pandemic relief package on Capitol Hill could put some upward pressure on them. But the most likely deal seems too watered down to give any serious boost to the economy or mortgage rates.
We dodged a bullet yesterday when the Fed said it would continue buying mortgage-backed securities until "significant further progress is made" to achieve an economic recovery.
And now we're stepping into the vacation lull when it probably takes something very serious to move those prices way up.
The latest wave of the pandemic is slowing recovery from previous waves. Yesterday's November retail numbers were disappointing, as were weekly numbers this morning for new unemployment claims. I therefore expect low rates for a few months.
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 most recent record of this species was made today – December 17th.
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 15th) and the MBA (November 17th) 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:
Q4 / 20
Q1 / 21
Q2 / 21
Q3 / 21
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 18, 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.