Today’s mortgage and refinance rates 

Average mortgage rates rose yesterday, ending a two-day run of falls. That rise wasn’t huge. But it wiped out nearly half Tuesday’s and Wednesday’s combined drops. Still, today’s rates are very close to rock bottom by historical standards.

Unfortunately, mortgage rates today might move higher again. However, any increase is likely to be modest or moderate. And things could change as the day progresses.

Current mortgage and refinance rates 

Should you lock a mortgage rate today?

It’s too soon to be sure that recent falls were just a blip. But I’m expecting higher rates overall in the coming weeks and months.

So 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

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 Treasury notes rose to 1.61% from 1.56%. (Bad for mortgage rates.) More than any other market, mortgage rates normally tend to follow these particular Treasury bond yields
• Major stock indexes were mostly lower after 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 may happen when indexes are lower. But this is an imperfect relationship
• Oil prices edged up to $82.40 from $82.16 a barrel. (Neutral for mortgage rates*.) Energy prices play a large role in creating inflation and also point to future economic activity. 
• Gold prices fell to $1,778 from $1,803 an ounce. (Bad for mortgage rates*.) In general, it is 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 — inched up to 71 from 70 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, mortgage rates today might rise. But be aware that “intraday swings” (when rates change direction during the day) are a common feature right now.

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. And a recent regulatory change has narrowed a gap that previously existed

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

Even yesterday’s disappointing growth figures for gross domestic product (GDP) in the last quarter couldn’t hold back rising mortgage rates. Most investors and analysts shrugged those data off on the grounds that GDP is likely to recover during the current quarter, which includes the holiday season.

That reaction doesn’t prove that I’m right to believe that we’ll see rising mortgage rates for much of the rest of this year — and possibly beyond. But it adds weight to that belief.

Of course, there will be periods of falls. Those are a natural feature of all markets. But I’m expecting the overall trend to be upward.

Naturally, something catastrophic could come along that undermines the economic recovery and throws market trends into reverse gear. But that’s looking pretty unlikely at the moment.

Meanwhile, the three big drivers of higher mortgage rates are still potent. For more information about those, read last Saturday’s weekend edition of these daily reports.

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.

Since then, the picture has been mixed with extended periods of rises and falls. Unfortunately, since September, the rises have grown more pronounced.

Freddie’s Oct. 28 report puts that weekly average for 30-year, fixed-rate mortgages at 3.14% (with 0.7 fees and points), up from the previous week’s 3.09%.

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 rate forecasts for the remaining, current quarter of 2021 (Q4/21) and the first three quarters of 2022 (Q1/22, Q2/22 and Q3/22).

The numbers in the table below are for 30-year, fixed-rate mortgages. Fannie’s and Freddie’s were published on Oct. 15 and the MBA’s on Oct. 18.

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

All these forecasts expect at least modestly higher mortgage rates fairly soon.

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.

Mortgage rate methodology