Today’s mortgage and refinance rates
Average mortgage rates rose yesterday. It wasn’t a big jump. But it was enough to take them to a nine–month high, according to Mortgage News Daily’s data.
Judging from early trends in markets, it’s looking as if mortgage rates today might rise again. But such trends often change as the hours pass.
Find your lowest rate. Start here (Jan 4th, 2022)
Current mortgage and refinance rates
|Conventional 30 year fixed||3.454%||3.477%||+0.08%|
|Conventional 15 year fixed||2.759%||2.794%||+0.21%|
|Conventional 20 year fixed||3.19%||3.227%||+0.07%|
|Conventional 10 year fixed||2.767%||2.837%||+0.08%|
|30 year fixed FHA||3.513%||4.282%||+0.34%|
|15 year fixed FHA||2.69%||3.337%||+0.07%|
|5/1 ARM FHA||2.44%||3.286%||+0.15%|
|30 year fixed VA||3.227%||3.419%||+0.2%|
|15 year fixed VA||2.995%||3.344%||+0.09%|
|5/1 ARM VA||2.574%||2.633%||+0.1%|
|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?
Yesterday’s rise in mortgage rates is unlikely to be the last. And I’m expecting to see them continue higher for some time, although periods during which they fall are inevitable.
However, that prediction is based on the new Omicron variant of COVID–19 beginning to retreat within a few weeks. If this notoriously unpredictable coronavirus proves more persistent and damaging than many scientists now think, those rates might start to fall again.
But, for now, 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 the same time yesterday, were:
- The yield on 10-year Treasury notes climbed to 1.67% from 1.59%. (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 higher soon after opening. (Bad 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 rose to $76.90 from $75.38 a barrel. (Bad for mortgage rates*.) Energy prices play a large role in creating inflation and also point to future economic activity
- Gold prices inched up to $1,809 from $1,808 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 – increased to 72 from 68 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
*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 are likely to rise. However, be aware that “intraday swings” (when rates change direction during the day) are a common feature right now.
Find your lowest rate. Start here (Jan 4th, 2022)
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?
I laid out yesterday why markets have new grounds for optimism over the Omicron variant. And why the current wave of infections just might turn out to be COVID–19’s swan song.
Of course, that’s far from certain. But, if optimistic scenarios for Omicron do translate into reality, we’re likely to see mortgage rates slowly head higher.
That’s because inflation rates remain high compared with the last few decades. And investors in fixed–income bonds hate inflation. Mortgage rates are largely determined by just such a type of bond.
Meanwhile, the Federal Reserve is winding down (“tapering,” in Fed–speak) its pandemic–era stimulus packages and is talking about hiking its interest rates three times this year. As one of those packages has been keeping mortgage rates artificially low for the best part of two years, that won’t help.
Whatever happens eventually, at a minimum, we’re in for plenty of Omicron disruption over the next few weeks. So expect markets to sometimes react to bad news with falls.
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, though not consistently so.
Freddie’s Dec. 30 report puts that weekly average for 30–year, fixed–rate mortgages at 3.11% (with 0.7 fees and points), up from the previous week’s 3.05%.
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 were published on Dec. 20 and the MBA’s on Dec. 21.
Freddie’s were released on Oct. 15. It now updates its forecasts only quarterly. So we may not get another from it until January. And its figures are already looking stale.
However, 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.”
Show me today’s rates (Jan 4th, 2022)
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.
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.
levaquin pills order levofloxacin 500mg pill
anastrozole 1mg cheap anastrozole generic buy viagra 50mg online
allopurinol 100mg canada ezetimibe 10mg over the counter zetia 10mg us
brand biaxin 250mg meclizine over the counter order meclizine 25 mg without prescription
tiotropium bromide usa order spiriva 9 mcg online generic terazosin 5mg
buy pioglitazone online cheap buy sildenafil generic viagra sildenafil 150mg
buy tadalafil 20mg free online slots casino card games
real money casino roulette game gambling site
buy generic altace 5mg etoricoxib 60mg generic purchase etoricoxib without prescription
edit my paper buy azulfidine 500mg pills azulfidine 500 mg drug
I came to this site with the introduction of a friend around me and I was very impressed when I found your writing. I’ll come back often after bookmarking! casino online
order diamox order isosorbide generic purchase azathioprine generic
purchase digoxin for sale order generic digoxin 250 mg purchase molnunat online
purchase carvedilol generic buy amitriptyline online cheap amitriptyline buy online
order amoxicillin generic amoxicillin 1000mg uk buy stromectol
alendronate us furadantin 100mg ca buy motrin 400mg without prescription
dapoxetine 30mg without prescription buy avanafil 200mg online motilium 10mg drug
nortriptyline 25mg sale order paracetamol online cheap order generic paroxetine
buy indocin 50mg online cheap cenforce order online cenforce 50mg for sale
order pepcid 40mg pill buy pepcid buy mirtazapine generic
buy doxycycline 200mg generic order doxycycline 200mg generic methylprednisolone 16 mg otc
order requip 2mg generic ropinirole 1mg tablet order labetalol without prescription
buy tadalafil 20mg order trimox 500mg online cheap amoxicillin 250mg uk
purchase tricor viagra price sildenafil citrate
esomeprazole 20mg drug cheap nexium 40mg order lasix without prescription
order tadalafil 40mg online Canadian pharmacy cialis viagra online buy
brand minocycline cheap terazosin 1mg order hytrin pill
tadalafil online Buy tadalafil in usa free samples of ed pills
order glycomet generic buy glycomet 1000mg sale order nolvadex
cheap modafinil 100mg stromectol 12mg over the counter phenergan pills
cheap clomiphene prednisolone 10mg without prescription buy prednisolone 5mg for sale
buy accutane 40mg pill cheap ampicillin buy ampicillin generic
fildena 50mg for sale generic pregabalin 150mg propecia over the counter
buy ivermectin stromectol oral prednisone 5mg buy prednisone 10mg online
ondansetron 8mg without prescription order amoxil generic bactrim 960mg uk
buy isotretinoin pills azithromycin online order zithromax order online
buy albuterol 2mg for sale purchase levothroid generic augmentin 1000mg tablet
modafinil online order buy provigil 100mg without prescription order metoprolol 100mg
prednisolone 40mg pills order furosemide 100mg online cheap buy lasix 40mg
dutasteride pills avodart without prescription purchase orlistat sale