Today’s mortgage and refinance rates 

Average mortgage rates inched lower last Friday. That was a nice surprise. Because earlier in the day they’d looked likely to edge up.

This morning, mortgage rates again look likely to hold steady or inch higher. But, given what happened on Friday, a modest fall remains possible.

Find and lock a low rate (Apr 13th, 2021)

Current mortgage and refinance rates 

Find and lock a low rate (Apr 13th, 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?

My recommendations (below) say everyone should lock now. But you may well want to hold off until they begin to rise again. Just be aware there’s some risk with that. Because, when they take off, they may do so sharply and with no notice.

And I remain convinced they will take off again. Absent some disastrous news, we look set for an economic boom in the coming months. And they virtually always bring higher rates.

So, 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 inched up to 1.68% from 1.67% (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 mostly 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 rose to $60.32 from $59.42 a barrel. (Bad for mortgage rates*.) Energy prices play a large role in creating inflation and also point to future economic activity.
• Gold prices were barely changed, up to $1,738 from $1,737 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 — Held steady at 55 out of 100. (Neutral 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 hold steady or rise modestly. 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 13th, 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

Yesterday, Federal Reserve Chair Jereme Powell told CBS that the nation’s economic outlook had “improved substantially.” And that he sees the economy as at an “inflection point.”

In those observations, he was in line with virtually all economists. And, if they’re right, a boom seems to be looming. The trouble is, booms almost invariably bring higher mortgage rates.

However, Mr. Powell went on to warn that a new COVID-19 surge could still derail the recovery. So our fates are in the hands of a dumb vaccine’s ability to mutate dangerously — and in the willingness of enough of our fellow Americans to observe COVID-19 hygiene protocols and to get vaccinated.

So nothing’s certain. But do you agree with me that a boom is likely to arrive in the next few months? Or do you think it will be blown off course? And, if the latter, will it be blown off course before you have to lock?

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, Freddie’s Apr. 8 report puts that weekly average at 3.13% (with 0.7 fees and points), down from the previous week’s 3.18%. In a news release, Freddie noted, “After moving up for seven consecutive weeks, mortgage rates have dropped due to the recent, modest decline of U.S. Treasury yields.”

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. Fannie’s were updated on March 17 and the MBA’s on March 22. But Freddie now publishes forecasts quarterly. Its figures are from Jan. 10 and are looking distinctly stale:

Forecaster	Q2/21	Q3/21	Q4/21	Q1/22
Fannie Mae	3.1%	3.1%	3.2%	3.3%
Freddie Mac	3.0%	3.0%	3.0%	N/A
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. 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 (Apr 13th, 2021)

Mortgage rate methodology