Today’s mortgage and refinance rates 

Average mortgage rates edged lower yesterday. But don’t get too excited. Wednesday and Thursday’s combined falls only just cancel out Tuesday’s rise. Still, these reductions keep these rates in the ultralow zone.

And there may be more to come, at least over the next few hours. Because it’s currently looking as if mortgage rates may inch lower again today.

Find and lock a low rate (Jan 15th, 2021)

Current mortgage and refinance rates 

Find and lock a low rate (Jan 15th, 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?

Unfortunately, it’s still too soon to call the likely direction of mortgage rates over the coming weeks and months. So floating your rate continues to be a gamble. Read on for more information about the conflicting forces that are acting on rates.

So mortgage rates could go up or down over the foreseeable (or, rather unforeseeable) future. But, for now, my personal rate lock recommendations, which are only my hunches, are:

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

Still, 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 about the same time yesterday morning, were:

• The yield on 10-year Treasurys inched up to 1.11% from 1.10%. (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 mixed but 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 edged higher to 52.89 from $52.75 a barrel. (Neutral for mortgage rates* because energy prices play a large role in creating inflation and also point to future economic activity.) 
• Gold prices nudged lower to $1,842 from $1,847 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 — Fell to 63 from 68 out of 100. (Good 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. The Fed is now a huge player and some days can overwhelm investor sentiment.

So use markets only as a rough guide. 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 look set to fall a little today.

Find and lock a low rate (Jan 15th, 2021)

Important notes on today’s mortgage rates

Here are some things you need to know:

1. The Fed’s ongoing interventions in the mortgage market (way over $1 trillion) should put continuing downward pressure on these rates. But it can’t work miracles all the time. And read “For once, the Fed DOES affect mortgage rates. Here’s why” if you want to understand this aspect of what’s happening
2. 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
3. Only “top-tier” borrowers (with stellar credit scores, big down payments and very healthy finances) get the ultralow mortgage rates you’ll see advertised
4. 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
5. When rate changes are small, some lenders will adjust closing costs and leave their rate cards the same
6. 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

I’m expecting mortgage rates to fall just a bit today.

Yesterday was the perfect day to watch the effects of the two conflicting forces that are currently acting on mortgage rates. The morning kicked off with some bad weekly jobless numbers. And those moved mortgage rates lower.

But, later in the day, President-elect Joe Biden announced his pandemic relief (or economic stimulus) plans, which topped $1.9 trillion. And the prospect of more government debt pushed those rates higher.

But that effect may have been blunted because investors have their doubts over whether such a bill would get through the US Senate. As you know, the Democratic Party falls short of the 60 seats needed there to force through such legislation. Many think the amount may be trimmed to nearer $1 trillion.

As it turned out, the bad economic news outweighed the higher-government-debt news. But only just. And that’s a conflict that’s likely to play out on many days for months to come, with differing outcomes on each.

Unfortunately, until one force gains a clear advantage over the other, it’s impossible to predict which will ultimately come out on top. So predicting mortgage rate trends is similarly impossible.

Recently

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

The most recent such record occurred on Jan. 7. But that had already been overtaken by events, even before it was published. And rates are now appreciably higher, as yesterday’s announcement from Freddie confirmed.

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 each quarter of 2021 (Q1/21, Q2/21, Q3/21 and Q4/21).

Fannie’s were released on Jan. 15, Freddie’s on Jan. 14 and the MBA’s on Dec. 21. The numbers in the table below are for 30-year, fixed-rate mortgages:

Forecaster	Q1/21	Q2/21	Q3/21	Q4/21
Fannie Mae	2.7%	2.7%	2.8%	2.8%
Freddie Mac	2.9%	2.9%	3.0%	3.0%
MBA	2.9%	3.0%	3.2%	3.2%

But, given so many unknowables, the current crop of forecasts may 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 (Jan 15th, 2021)

Mortgage rate methodology