Today’s mortgage and refinance rates
Average mortgage rates climbed relatively sharply last Friday, capping a bad week. And some readers wanting certain types of mortgages could be facing a rate beginning with a four. But, of course, such rates were commonplace only three years ago.
So far this morning, markets are suggesting mortgage rates today might barely move. But we remain in volatile times. So nothing’s certain.
Current mortgage and refinance rates
|Conventional 30 year fixed|
|Conventional 30 year fixed||3.976%||3.998%||Unchanged|
|Conventional 15 year fixed|
|Conventional 15 year fixed||3.096%||3.126%||Unchanged|
|Conventional 20 year fixed|
|Conventional 20 year fixed||3.725%||3.759%||Unchanged|
|Conventional 10 year fixed|
|Conventional 10 year fixed||3.199%||3.264%||Unchanged|
|30 year fixed FHA|
|30 year fixed FHA||4.023%||4.83%||Unchanged|
|15 year fixed FHA|
|15 year fixed FHA||3.284%||3.944%||Unchanged|
|30 year fixed VA|
|30 year fixed VA||3.891%||4.091%||Unchanged|
|15 year fixed VA|
|15 year fixed VA||2.888%||3.215%||Unchanged|
|5/1 ARM VA|
|5/1 ARM VA||4.17%||3.527%||+0.07%|
|Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions here.|
Should you lock a mortgage rate today?
We could be in for a bit of relief sometime soon. Mortgage rates often plateau or dip a bit after appreciable rises.
But don’t expect sufficient falls to make much of a dent in recent rises. They’re not impossible, but they do look to me unlikely.
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
>Related: 7 Tips to get the best refinance rate
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 10 a.m. last Friday, were:
- The yield on 10-year Treasury notes inched up to 1.93% from 1.91%. (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 and barely moving. (Neutral 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 fell to $91.32 from $92.70 a barrel. (Good for mortgage rates*.) Energy prices play a large role in creating inflation and also point to future economic activity
- Gold prices edged up to $1,815 from $1,803 an ounce. (Neutral 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 — fell to 28 from 33 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
*A change of less than $20 on gold prices or 40 cents on oil ones is a fraction of 1%. So we only count meaningful differences as good or bad for mortgage rates.
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 hold steady or just inch either side the neutral line. However, 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:
- 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’
- Only “top-tier” borrowers (with stellar credit scores, big down payments and very healthy finances) get the ultralow mortgage rates you’ll see advertised
- 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
- When daily rate changes are small, some lenders will adjust closing costs and leave their rate cards the same
- Refinance rates are typically close to those for purchases.
A lot is going on at the moment. 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?
Last week’s economic reports were all about employment data. Later this week, we’ll find out what happened to inflation in January.
Both are key to the Federal Reserve’s next moves. Because the Fed’s twin central duties are to keep employment and inflation within acceptable limits.
Last Friday’s great jobs numbers gave the Fed permission to go all-in on inflation, expanding its plans for hiking its own rates and reversing its asset purchasing program earlier than planned.
That program has been responsible for keeping mortgage rates artificially low for nearly two years through its purchases of mortgage-backed securities. It’s already announced that it’s winding those purchases down to zero by March. But it might begin actively selling — pushing up mortgage rates further and faster — sooner than expected.
The main hope of it holding off on those aggressive anti-inflationary maneuvers is if inflation itself slowed unexpectedly quickly in January.
Most economists are already expecting it to have slowed a bit that month. But that expectation is baked into the Fed’s (and markets’) thinking. We’d need a bigger drop in the figures, due Thursday, to head off higher mortgage rates.
So, expect some volatility in key markets before Thursday morning as investors position themselves for the news. And then some falls in mortgage rates if inflation is lower than expected — or rises if it’s higher. Of course, little might change if the data meet expectations.
For a more detailed look at what’s happening to mortgage rates, read the latest weekend edition of this report.
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 that year, according to Freddie Mac.
The most recent weekly record low occurred on Jan. 7, 2021, 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 last September, the rises have grown more pronounced, though not consistently so.
Freddie’s Feb. 3 report puts that weekly average for 30-year, fixed-rate mortgages at 3.55% (with 0.8 fees and points), unchanged from the previous week.
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 four quarters of 2022 (Q1/22, Q2/22, Q3/22, Q4/22).
The numbers in the table below are for 30-year, fixed-rate mortgages. Fannie’s were published on Jan. 19 and Freddie’s and the MBA’s on Jan. 21.
Personally, I was surprised that Fannie Mae only slightly increased its rate forecasts in January. It believes that rates for 30-year, fixed-rate mortgages will average 3.2% over the current quarter. But, on the day its figures were published, we reported those for conventional loans were already up to 3.87%.
Do Fannie’s economists expect those rates to plummet later this month or in February or March and remain lower in the following quarters? If so, they know something that I don’t. And that their peers in Freddie and the MBA’s teams don’t, either, though I’m less optimistic than any of them.
Of course, given so many unknowables, the whole current crop of forecasts may be even more speculative than usual.
Find your lowest rate today
You should comparison shop 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
The Mortgage Reports receives rates based on selected criteria from multiple lending partners each day. We arrive at an average rate and APR for each loan type to display in our chart. Because we average an array of rates, it gives you a better idea of what you might find in the marketplace. Furthermore, we average rates for the same loan types. For example, FHA fixed with FHA fixed. The end result is a good snapshot of daily rates and how they change over time.