Posted 11/23/2017

Gina Pogol writes about personal finance, credit, mortgages and real estate. She loves helping consumers understand complex and intimidating topics. She can be reached on Twitter at @GinaPogol.

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Mortgage rates today, November 23, plus lock recommendations

mortgage rates today, today's mortgage rates

What's driving current mortgage rates?

Mortgage rates today are unchanged. Financial markets in the US close for the Thanksgiving holiday. However, the fed did release the minutes from its latest meeting yesterday afternoon, and that did move the needle before markets closed.

While Fed officials generally felt good about employment, consumer spending and manufacturing, they expressed concern about the latest surge in stock prices, and that a reversal could really damage the economy.

Some members believe that they should be more proactive about raising short-term interest rates, and that there is danger in waiting too long to deal with possible inflation. This lead some analysts to conclude that we will see another rate increase before the end of the year.

Keep in mind, however, that mortgages are long-term debts, not short-term. They are more likely to follow Treasury rates.

thanksgiving mortgage rates

Verify your new rate (Nov 23rd, 2017)

Today's mortgage rates

Program Rate APR* Change
Conventional 30 yr Fixed 3.750 3.750 Unchanged
Conventional 15 yr Fixed 3.250 3.250 Unchanged
Conventional 5 yr ARM 3.375 3.830 Unchanged
30 year fixed FHA 3.375 4.360 Unchanged
15 year fixed FHA 3.125 4.072 Unchanged
5 year ARM FHA 3.250 4.345 Unchanged
30 year fixed VA 3.500 3.672 Unchanged
15 year fixed VA 3.250 3.559 Unchanged
5 year ARM VA 3.500 3.626 Unchanged

Your rate might be different. Click here for a personalized rate quote. See our rate assumptions here.

Financial data that affect today's mortgage rates

US financial markets are closed. However, we live in a global economy these days. Some commodity prices and indexes changed since yesterday morning's report.

  • Major stock indexes are not going anywhere because markets are closed.
  • Gold prices fell $1 an ounce to $1,291 (That is such a small decrease that i's fairly neutral. But 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).
  • Oil stayed at$58 a barre (neutral for rates, because higher energy prices play a large role in creating inflation)
  • The yield on ten-year Treasuries fell two basis points (2/100th of 1 percent) from yesterday's opening rate, to 2.32 percent (good for rates, because mortgage rates tend to follow Treasuries)
  • CNNMoney’s Fear & Greed Index fell one point to 54. That's about as neutral as it gets.

Mortgage rates today remain very favorable for anyone considering homeownership. Residential financing is still affordable.

This week:

Thanksgiving takes up the rest of the spotlight this week. Wednesday is the busy day, combining the reports of several days.

Rate lock recommendation

In general, 30-day is the standard price most lenders will (should) quote you. The 15-day option should get you a discount, and locks over 30 days usually cost more.

If you want to "set it and forget it," though, current mortgage rates are attractive enough to make that an okay move.

  • 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

What causes rates to rise and fall?

Mortgage interest rates depend on a great deal on the expectations of investors. Good economic news tends to be bad for interest rates, because an active economy raises concerns about inflation. Inflation causes fixed-income investments like bonds to lose value, and that causes their yields (another way of saying interest rates) to increase.

For example, suppose that two years ago, you bought a $1,000 bond paying five percent interest ($50) each year. (This is called its “coupon rate.") That’s a pretty good rate today, so lots of investors want to buy it from you. You sell your $1,000 bond for $1,200.

When rates fall

The buyer gets the same $50 a year in interest that you were getting. However, because he paid more for the bond, his interest rate is not five percent.

  • Your interest rate: $50 annual interest / $1,000 = 5.0%
  • Your buyer’s interest rate: $50 annual interest / $1,200 = 4.2%

The buyer gets an interest rate, or yield, of only 4.2 percent. And that’s why, when demand for bonds increases and bond prices go up, interest rates go down.

When rates rise

However, when the economy heats up, the potential for inflation makes bonds less appealing. With fewer people wanting to buy bonds, their prices decrease, and then interest rates go up.

Imagine that you have your $1,000 bond, but you can't sell it for $1,000, because unemployment has dropped and stock prices are soaring. You end up getting $700. The buyer gets the same $50 a year in interest, but the yield looks like this:

  • $50 annual interest / $700 = 7.1%

The buyer’s interest rate is now slightly more than seven percent. Interest rates and yields are not mysterious. You calculate them with simple math.

Verify your new rate (Nov 23rd, 2017)

 

The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.

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2017 Conforming, FHA, & VA Loan Limits

Mortgage loan limits for every U.S. county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)