Today’s mortgage and refinance rates 

Average mortgage rates edged higher last Friday. It was the first rise since the closing days of March.

But it’s way too soon to think of that increase as the resumption of the upward rate trend. And mortgage rates today look likely to hold steady or just edge either side of the neutral line.

Find and lock a low rate (Apr 20th, 2021)

Current mortgage and refinance rates 

Find and lock a low rate (Apr 20th, 2021)

COVID-19 mortgage updates: Mortgage lenders are changing rates and rules due to COVID-19. To see the latest on how coronavirus could impact your home loan, click here.

Should you lock a mortgage rate today?

The safe option is to lock your mortgage rate now. But maybe that’s too safe. Should you hold on until rates clearly begin to move higher again?

Perhaps. But, if you do, check to see how rates are moving at least once every working day. And talk to your lender now to make sure everything’s ready for you to lock almost instantly when you decide to push the button.

Still, for now, my personal rate lock recommendations remain:

• LOCK if closing in 7 days
• LOCK if closing in 15 days
• LOCK if closing in 30 days
• LOCK if closing in 45 days
• LOCK if closing in 60 days

But I don’t claim perfect foresight. And your personal analysis could turn out to be as good as mine — or better. So you might choose to be guided by your instincts and your personal tolerance for risk.

Market data affecting today’s mortgage rates 

Here’s a snapshot of the state of play this morning at about 9:50 a.m. (ET). The data, compared with roughly the same time last Friday, were:

• The yield on 10-year Treasurys rose to $1.61% from 1.59% (Bad for mortgage rates.) More than any other market, mortgage rates normally tend to follow these particular Treasury bond yields, though less so recently
• Major stock indexes were lower on opening. (Good for mortgage rates.) When investors are buying shares they’re often selling bonds, which pushes prices of those down and increases yields and mortgage rates. The opposite happens when indexes are lower
• Oil prices climbed to $63.57 from $63.12 a barrel. (Bad for mortgage rates*.) Energy prices play a large role in creating inflation and also point to future economic activity. 
• Gold prices edged down to $1,772 from $1,776 an ounce. (Neutral for mortgage rates*.) In general, it’s better for rates when gold rises, and worse when gold falls. Gold tends to rise when investors worry about the economy. And worried investors tend to push rates lower
• CNN Business Fear & Greed index — Rose to 61 from 59 out of 100. (Bad for mortgage rates.) “Greedy” investors push bond prices down (and interest rates up) as they leave the bond market and move into stocks, while “fearful” investors do the opposite. So lower readings are better than higher ones

Caveats about markets and rates

Before the pandemic and the Federal Reserve’s interventions in the mortgage market, you could look at the above figures and make a pretty good guess about what would happen to mortgage rates that day. But that’s no longer the case. We still make daily calls. And are usually right. But our record for accuracy won’t achieve its former high levels until things settle down.

So use markets only as a rough guide. Because they have to be exceptionally strong or weak to rely on them. But, with that caveat, so far mortgage rates today look likely to be unchanged or barely changed. Just be aware that intraday swings (when rates change direction during the day) are a common feature right now.

Find and lock a low rate (Apr 20th, 2021)

Important notes on today’s mortgage rates

Here are some things you need to know:

1. Typically, mortgage rates go up when the economy’s doing well and down when it’s in trouble. But there are exceptions. Read ‘How mortgage rates are determined and why you should care‘
2. Only “top-tier” borrowers (with stellar credit scores, big down payments and very healthy finances) get the ultralow mortgage rates you’ll see advertised
3. Lenders vary. Yours may or may not follow the crowd when it comes to daily rate movements — though they all usually follow the wider trend over time
4. When daily rate changes are small, some lenders will adjust closing costs and leave their rate cards the same
5. Refinance rates are typically close to those for purchases. But some types of refinances are higher following a regulatory change

So there’s a lot going on here. And nobody can claim to know with certainty what’s going to happen to mortgage rates in coming hours, days, weeks, or months.

Are mortgage and refinance rates rising or falling?

Today and soon

In Saturday’s weekend edition of this article, I gave more possible reasons why we’ve been seeing so many falls in mortgage rates recently. With the exception of last Friday’s modest rise, April has brought only lower rates.

All the analyses I’ve trawled from the financial press suggest these falls are likely to be short-term phenomena. True, nobody knows when they’re likely to end. But economists and industry observers seem nearly unanimous in predicting a resumption in 2021’s upward trend sometime soon.

And the reason’s clear. Within months, the economic recovery looks very likely to turn into a boom. And bond markets should be positioning themselves to take advantage of that soon. Indeed, stock markets already are.

Of course, it’s always possible that the recovery will be blown off course. If that occurs, it will most likely be down to a resurgence in COVID-19 infections. And that, perhaps, might occur if a new, more virulent variant emerges against which existing vaccines provide only limited protection.

But it currently appears more probable that the boom will sail into harbor pretty much on schedule. So I’m expecting higher mortgage rates any day … or week.

For more background on my wider thinking, read our latest weekend edition, which is published every Saturday soon after 10 a.m. (ET).

Recently

Over much of 2020, the overall trend for mortgage rates was clearly downward. And a new, weekly all-time low was set on 16 occasions last year, according to Freddie Mac.

The most recent weekly record low occurred on Jan. 7, when it stood at 2.65% for 30-year fixed-rate mortgages. But then the trend reversed and rates rose.

However, those rises paused in April. And Freddie’s Apr. 15 report puts that weekly average at 3.04% (with 0.7 fees and points), down from the previous week’s 3.13%.

Expert mortgage rate forecasts

Looking further ahead, Fannie Mae, Freddie Mac and the Mortgage Bankers Association (MBA) each has a team of economists dedicated to monitoring and forecasting what will happen to the economy, the housing sector and mortgage rates.

And here are their current rates 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 30-year, fixed-rate mortgages. Freddie’s were updated on April 14, Fannie’s on April 12 and the MBA’s on March 22.

Forecaster	Q2/21	Q3/21	Q4/21	Q1/22
Fannie Mae	3.2%	3.3%	3.4%	3.5%
Freddie Mac	3.2%	3.3%	3.4%	3.5%
MBA	3.2%	3.4%	3.6%	3.7%

However, given so many unknowables, the current crop of forecasts might be even more speculative than usual.

Find your lowest rate today

Some lenders have been spooked by the pandemic. And they’re restricting their offerings to just the most vanilla-flavored mortgages and refinances.

But others remain brave. And you can still probably find the cash-out refinance, investment mortgage or jumbo loan you want. You just have to shop around more widely.

But, of course, you should be comparison shopping widely, no matter what sort of mortgage you want. As federal regulator the Consumer Financial Protection Bureau says:

Shopping around for your mortgage has the potential to lead to real savings. It may not sound like much, but saving even a quarter of a point in interest on your mortgage saves you thousands of dollars over the life of your loan.

Verify your new rate (Apr 20th, 2021)

Mortgage rate methodology