May 18, 2021

MP Now News

Mortgage News

Mortgage And Refinance Rates Today, Apr. 16

Today’s mortgage and refinance rates

Average mortgage rates fell yesterday. And it was the biggest single drop in weeks. In two or three other cases, the average 30-year fixed rate mortgage rate could fall back below 3%.

Unfortunately, Mortgage rates could go up today – For the first time since the end of March. Could this be the start of a resumption of the upward trend of 2021? It is possible. But it’s way too early to be sure.

Find and lock a low rate (April 17, 2021)

Current mortgage and refinancing rates

program Mortgage rates APR * change
Conventional set for 30 years 2.99%. 2.995%. -0.04%
Conventional 15 years fixed 2.25%. 2,367%. -0.03%
Conventional set for 20 years 2.75%. 2,842%. -0.06%
Conventional 10 years fixed 1.906%. 2.08%. + 0.02%
Fixed FTA for 30 years 2.73%. 3.387%. -0.04%
Fixed FTA for 15 years 2.528%. 3.113%. -0.06%
5 years ARM FHA 2.5%. 3,201%. Unchanged
30 years permanent VA 2,367%. 2.539%. -0.01%
15 years fixed VA 2.25%. 2.571%. Unchanged
5 years ARM VA 2.5%. 2,379%. Unchanged
Prices are provided by our partner network and may not reflect the market. Your rate could be different. Click here for a personalized price offer. See our tariff assumptions Here.

Find and lock a low rate (April 17, 2021)


COVID-19 Mortgage Updates: Mortgage lenders are changing interest rates and rules due to COVID-19. For the latest information on how coronavirus can affect your home loan, Click here.

Should You Lock A Mortgage Rate Today?

I assume that mortgage rates will rise again anytime. The problem is, I don’t know when “anytime” will be.

While we wait for that sad day, you definitely keep floating your course. However, make sure you are ready to lock down quickly if necessary. And monitor prices at least daily.

However, my personal recommendations for tariff blocking remain for the time being:

  • LOCK when you approach 7th Days
  • LOCK when you approach fifteen Days
  • LOCK when you approach 30th Days
  • LOCK when you approach 45 Days
  • LOCK when you approach 60 Days

But I don’t claim perfect foresight. And your personal analysis could turn out to be as good as mine – or better. So you can be guided by your instincts and your personal risk tolerance.

Market Data Affecting Mortgage Rates Today

Here’s a snapshot of the current status this morning at 9:50 a.m. (ET). The dates, compared to about the same time yesterday, were:

  • The Return on 10 year treasury increased from 1.58% to 1.59% (Bad for mortgage rates.) More than any other market, mortgage rates usually tend to follow these particular government bond yields, albeit more recently
  • Important stock indices were mostly higher when opened. (Bad for mortgage rates.Often times, when investors buy stocks, they sell bonds, which drives down the prices of those stocks and increases yields and mortgage rates. The opposite happens when the indices are lower
  • Oil prices rose from $ 62.71 a barrel to $ 63.12. ((Bad for mortgage rates *.) Energy prices play a major role indicate the creation of inflation and also future economic activity.)
  • Gold prices rose from $ 1,755 an ounce to $ 1,776. ((Good for mortgage rates*.) In general, it is better for interest rates when gold rises and worse for interest rates when gold falls. Gold tends to rise when investors worry about the economy. And worried investors tend to cut rates
  • CNN Business Fear & Greed Index – Rose from 53 out of 100 to 59. (Bad for mortgage rates.) “Greedy” investors Push bond prices down (and interest rates up) as they exit the bond market and invest in stocks, while “fearful” investors do the opposite. So lower readings are better than higher ones

* A change of less than $ 20 in gold prices or 40 cents in oil prices is a fraction of 1%. Hence, we count significant differences in mortgage rates only as good or bad.

Reservations about markets and prices

Before the pandemic and the Federal Reserve’s intervention in the mortgage market, you could look at the numbers above and make a pretty good guess as to what would happen to mortgage rates that day. But that is no longer the case. We still use the phone every day. And are usually right. But our record for accuracy will not reach its former high level until things settle down.

Use markets only as a rough guide. Because they have to be exceptionally strong or weak to be relied on. But with this restriction so far Mortgage rates are likely to rise today. Note, however, that intraday fluctuations (when prices change direction during the day) are a common feature these days.

Find and lock a low rate (April 17, 2021)

Important information about today’s mortgage rates

Here are some things you need to know:

  1. Typically, mortgage rates go up when the economy is doing well and go down when they are in trouble. There are exceptions, however. Read ‘How are mortgage rates determined and why should you care?
  2. Only top notch borrowers (with great credit scores, high down payments, and very healthy finances) will get the ultra-low mortgage rates you see advertised
  3. Lenders vary. Yours may or may not follow the crowd when it comes to daily interest rate movements – though they all usually follow the broader trend over time
  4. When the daily rate changes are small, some lenders adjust closing costs and leave their rate cards the same
  5. The refinancing rates are usually close to those for purchases. However, some types of refinancing are higher after a regulatory change

So there is a lot going on here. And no one can claim to know for sure what will happen to mortgage rates in the coming hours, days, weeks, or months.

Are mortgage and refinancing rates rising or falling?

today and so on

YesterdayI gave a few reasons that might explain why mortgage rates are falling now. Did you find this completely convincing? They were the best I could find after searching the financial press.

But none of them gave any indication of how long these falls could last. And to be honest, I don’t have any.

However, I am more certain that it is very likely that rates will soon resume their uptrend. Today? Next week? Next month? Who knows?

The reason I’m so confident is the current economic recovery, which should turn into a boom within a few months. Very few, if any, serious booms in history have failed to bring higher rates. The New York Times summarized the current situation yesterday:

Rising retail sales and a sharp decline in jobless claims are the latest reflections of an accelerating recovery and suggest a year of remarkable growth.

– The New York Times, “Signs of Economic Hope Growing, Some with Superlatives,” April 15, 2021

Of course, it is still possible that the recovery – and with it the boom – could derail. If so, a resurgence of the COVID-19 pandemic would be the most likely cause. And mortgage rates could fall as a result. But most of the smart money goes into the boom to stay on track.

You can find more background information on my further thinking in our latest version Weekend editionwhich is released every Saturday just after 10 p.m. (ET).

Recently

For much of 2020, the general trend in mortgage rates was down significantly. According to Freddie Mac, a new weekly all-time low was hit 16 times in the past year.

The latest weekly record low was recorded on January 7th when 30-year fixed rate mortgages stood at 2.65%. But then the trend was reversed and interest rates rose.

However, according to Freddie’s April 15 report, that weekly average is 3.04% (with 0.7 fees and points) compared to 3.13% the previous week.

Mortgage rate forecasting experts

Looking ahead, Fannie Mae, Freddie Mac, and the Mortgage Bankers Association (MBA) each have a team of economists devoted to monitoring and forecasting the impact on the economy, housing and mortgage rates.

And here are their current interest rate 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 a 30-year fixed rate mortgage. Freddies updated April 14th, Fannies April 12th, and the MBA updated March 22nd.

Forecaster Q2 / 21 Q3 / 21 Q4 / 21 Q1 / 22
Fannie Mae 3.2% 3.3% 3.4% 3.5%
Freddie Mac 3.2% 3.3% 3.4% 3.5%
MBA 3.2% 3.4% 3.6% 3.7%

However, with so many unknowns, the current number of predictions might be even more speculative than usual.

Find your lowest price today

Some lenders have been terrified by the pandemic. And they limit their offerings to the most vanilla-flavored mortgages and refinances.

But others remain brave. And you can still likely find the withdrawal refinance, investment mortgage, or jumbo loan that you want. You just need to shop broader.

But of course, no matter what type of mortgage you want, you should do a lot of shopping in comparison. As the federal regulatory authority, the Consumer Financial Protection Office says:

Shopping for your mortgage can result in real savings. It may not sound like much, but If you save even a quarter point in interest on your mortgage, you will save thousands of dollars over the life of your loan.

Check your new tariff (April 17, 2021)

Mortgage rate method

The mortgage reports get interest rates based on selected criteria from multiple credit partners every day. We’ll find an average rate and an annual interest rate for each type of loan that we want to show on our chart. Since we calculate a series of average prices, this will give you a better idea of ​​what you might find in the market. We also calculate average interest rates for the same types of loans. For example, FHA was fixed with FHA. The end result is a good snapshot of the daily rates and how they change over time.