Today’s mortgage and refinance rates 

Average mortgage rates nudged lower yesterday. It was the first actual drop in a week.

First thing, mortgage rates looked unlikely to move far today, with a holding steady or small adjustment most probable. But markets have the potential to be skittish. So a bigger change remains possible.

Find and lock a low rate (Mar 11th, 2021)

Current mortgage and refinance rates 

Find and lock a low rate (Mar 11th, 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?

Since the start of the year, we’ve seen plenty of hopeful signs for mortgage rates. But they’ve all fizzled out, usually very quickly.

Will this bright spot, — following Monday’s holding steady and yesterday’s fall — be any different? Maybe. Nobody can be sure. But I can’t see any reason to think it will be.

So my personal rate lock recommendations stand:

• 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, with so much uncertainty at the moment, your instincts could easily turn out to be as good as mine — or better. So be guided by your gut 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 yesterday, were:

• The yield on 10-year Treasurys inched up to 1.54% from 1.53%. (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 higher on opening. (Bad 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 were slightly higher at $64.80, up from $64.59 a barrel. (Neutral for mortgage rates*.) Energy prices play a large role in creating inflation and also point to future economic activity.) 
• Gold prices inched up to $1,718 from $1,715 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 52 from 49 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 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 (rates are likely to rise) or weak (they could fall) to rely on them. But, with that caveat, so far mortgage rates today look likely to hold steady or barely move. 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 (Mar 11th, 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 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

None of us has a crystal ball. And all any of us can do is assess where markets are and where they’re likely to go. It’s all about the odds.

But, on that basis, I don’t perceive many grounds for optimism over mortgage rates at the moment. The economic pressures that have pushed them higher this year are still strong. And the ones that try to drag them lower remain relatively weak.

Of course, all that could always change in the blinking of an eye. And we could find ourselves seeing new all-time lows. But will markets actually alter course to that extent? Only if some massively important bad news emerges. And what are the odds of that?

That’s not to say recent movements have been either strong or quick. If you add up all the rises and falls so far this month, mortgage rates are only a bit higher than they were at the start. But, to my eyes, we’re a long way off seeing significant and sustained falls.

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 rates then rose. And Freddie’s Mar. 4 report puts that weekly average at 3.02% (with 0.6 fees and points), up from the previous week’s 2.97%.

Expert mortgage rate forecasts

Looking further ahead, Fannie Mae, Freddie Mac, and the Mortgage Bankers Association (MBA) each have 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 each quarter of 2021 (Q1/21, Q2/21, Q3/21, and Q4/21).

The numbers in the table below are for 30-year, fixed-rate mortgages. Fannie’s and the MBA’s were updated on Feb. 18 and 19 respectively. But Freddie now publishes forecasts quarterly and its figures 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, given so many unknowables, the current crop of forecasts may be even more speculative than usual. And there’s certainly a widening spread as the year progresses.

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 (Mar 11th, 2021)

Mortgage rate methodology