Today’s mortgage and refinance rates 

Average mortgage rates inched lower yesterday. But, barring surprises today, June looks set to end with those rates higher than they were at the beginning of the month.

Another small change looks to be on the cards this morning. And mortgage rates today look likely to hold steady or inch lower again.

Find and lock a low rate (Jun 30th, 2021)

Current mortgage and refinance rates 

Find and lock a low rate (Jun 30th, 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?

Mortgage rates have been doing a lot of holding steady or just inching up and down recently. There’s been just one worthwhile fall since the last of the big rises back on June 17. So rewards for those still floating have been thin.

But their risks remain high. Because most experts believe those rates will rise when they finally start moving.

So my personal rate lock recommendations must 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

However, 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 yesterday, were:

• The yield on 10-year Treasurys fell to 1.45% from 1.49%. (Good 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 a little lower soon 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
• Oil prices edged down to $73.50 from $73.55 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 down to $1,757 from $1,758 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 — decreased to 41 from 45 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. 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 edge lower. But be aware that “intraday swings” (when rates change direction during the day) are a common feature right now.

Find and lock a low rate (Jun 30th, 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

If you’re looking for good news about lower mortgage rates, I’ve none to report. Indeed, the pressures on them to rise seem to be building.

For example, this morning’s Financial Times has a headline, “The inherent instability of the Goldilocks market consensus.” That consensus says that inflation is not too hot, not too cool but just right. Goldilocks, geddit? But the FT reckons that “Too much confidence is placed in the view that inflation rises will be transitory.”

However, if enough people — and especially investors and analysts — believe that inflation is here to stay, the Federal Reserve might be forced to end its asset purchases early. And those assets include $40 billion a month on mortgage-backed securities, the yields for which determine mortgage rates. When the Fed chooses (or is pushed) to taper those, mortgage rates are likely to rise sharply.

Meanwhile, CNN Business’s overnight newspaper reminds its readers that:

Gross domestic product is expected to grow at an average pace of 7.5% this year.  That’s bananas. The fastest growth rate since 1951.

And it’s a truism that mortgage rates tend to rise the better the economy is doing. So stand by for (absent some huge event) a double whammy of rising rates.

In the meantime, don’t forget this Friday, when the monthly employment situation report is published. It may be a damp squib. Or it could push mortgage rates higher or lower, depending on what the data it contains say.

Mortgage rates and inflation: Why are rates going up?

For more background, read Saturday’s weekend edition of this column, which has more space for in-depth analysis.

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 were mostly replaced by falls in April, though those moderated during the second half of that month. Meanwhile, May saw falls very slightly outweighing rises. Freddie’s June 24 report puts that weekly average at 3.02% (with 0.7 fees and points), up from the previous week’s 2.93%.

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 June 16 and the MBA’s on June 18. Freddie’s forecast is dated April 14. But it now updates only quarterly. So its numbers are looking stale.

Forecaster	Q2/21	Q3/21	Q4/21	Q1/22
Fannie Mae	3.0%	3.0%	3.2%	3.2%
Freddie Mac	3.2%	3.3%	3.4%	3.5%
MBA	3.0%	3.2%	3.5%	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 (Jun 30th, 2021)

Mortgage rate methodology