September 28, 2021

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Mortgage News

Mortgage And Refinance Rates Today, Aug. 23

Today’s mortgage and refinancing rates

Average mortgage rates were stable last Friday. And they ended the week just a shade lower than when they started it. So they stay close to their lowest point in history.

First off this morning, it looked like mortgage rates will be stable today or just inches from the neutral line. But that could change during the day.

Find and lock a cheap rate (August 24, 2021)

Current mortgage and refinancing rates

program Mortgage rates Effective interest rate* Change
Conventional 30 years 2,771% 2,771% Unchanged
Conventionally fixed for 15 years 1,992% 1,992% Unchanged
Conventional 20 years old 2.49% 2.49% Unchanged
Conventionally fixed for 10 years 1,851% 1,898% Unchanged
30 years permanent FHA 2,688% 3,343% Unchanged
Fixed FTA for 15 years 2,388% 2,988% Unchanged
5/1 ARM FHA 2.5% 3,201% -0.01%
30 years of permanent VA 2,255% 2,426% Unchanged
15 years fixed VA 2.25% 2,571% Unchanged
5/1 ARM-VA 2.5% 2,379% -0.01%
Prices are provided by our partner network and may not reflect the market. Your rate can be different. Click here for an individual price offer. See our rate assumptions here.
Find and lock a cheap rate (August 24, 2021)

COVID-19 Mortgage Updates: Mortgage lenders are changing interest rates and rules due to COVID-19. To learn how the coronavirus could affect your home loan, Click here.

Should You Lock A Mortgage Rate Today?

Mortgage rates have seen some ups and downs lately. But now they are moving in a narrow range again. As long as this continues there is little you can gain or lose by floating yours.

If I were you I would be banning my rate soon. Because I believe the risks of higher interest rates outweigh the likely gains from floating. But you could take the opposite view. It’s about your willingness to take risks.

My personal rate lock recommendations remain for the time being:

  • LOCK when close in 7th Days
  • LOCK when close in fifteen Days
  • LOCK when close in 30th Days
  • HOVER when close in 45 Days
  • HOVER when close in 60 Days

However, I do not claim to have perfect foresight. And your personal analysis could be as good as mine – or better. So let your instincts and your personal risk tolerance guide you.

Market Data Affecting Mortgage Rates Today

Here’s a snapshot of the score this morning at around 9:50 a.m. ET. The dates, compared to about the same time last Friday, were:

  • the 10 year Treasury note yield stable at 1.26%. (Neutral for mortgage rates.) More than any other market, mortgage rates usually follow these particular government bond yields
  • Important stock indices were higher shortly after opening. (Bad for mortgage rates.Often times, when investors buy stocks, they sell bonds, which depresses the prices of those stocks and increases yields and mortgage rates. The opposite can happen when the indices are lower
  • Oil prices climbed to $ 64.88 from $ 62.91 a barrel. (Bad for mortgage rates *.) Energy prices play a major role Generate inflation and also indicate future economic activity.
  • Gold prices rose to $ 1,805 1 $,787 an ounce. (Neutral for mortgage ratesIn general, it is better for interest rates when gold rises and worse when gold falls. Gold tends to rise when investors worry about the economy. And worried investors tend to cut rates
  • CNN Business Fear and Greed Indexincreased from 22 to 30 From 100. (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 values ​​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%. Therefore, when it comes to mortgage rates, we only count meaningful differences as good or bad.

Reservations about markets and prices

Before the pandemic and the Federal Reserve’s interventions 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 they are mostly right. But our record for accuracy won’t hit its old highs until things settle down.

Use markets as a rough guide only. Because they have to be extraordinarily strong or weak to be able to rely on them. But with this restriction so far Mortgage rates are likely to be unchanged or hardly changed today. Note, however, that “intraday swings” (when prices change direction during the day) are a common feature these days.

Find and lock a cheap rate (August 24, 2021)

Important information about current mortgage rates

Here are some things you need to know:

  1. Usually mortgage rates go up when the economy is doing well and go down when the economy is in trouble. But there are exceptions. Read ‘How Mortgage Rates Are Determined and Why You Should Care About It
  2. Only “top notch” borrowers (with great credit scores, high down payments, and very healthy finances) will get the extremely low mortgage rates you see advertised
  3. Lenders vary. Yours may or may not follow the crowd when it comes to daily price action – though they usually all follow the broader trend over time
  4. When the daily price changes are small, some lenders adjust closing costs and leave their price lists unchanged
  5. The refinancing rates are usually close to those for purchases. And a recent regulatory change has closed a pre-existing loophole

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 forth

At the moment the markets seem pretty calm. And that can stay for several days or even weeks.

But it’s only possible that things might change on Friday. Because that sees two potentially important events:

  1. Federal Reserve Chairman Jerome Powell will give a virtual speech at the annual central banker symposium in Jackson Hole, WY. And while he’s unlikely to say anything about angry markets, he just might
  2. Also released this morning is the Index of Personal Consumption Expenditure (PCE) excluding Food and Energy (“Core PCE”). This is the Fed’s preferred measure of inflation. So it’s hugely influential. And it could easily move markets if it contains data that is unexpectedly good or bad

When then British Prime Minister Harold Macmillan was asked in the 1950s what made his job difficult, he replied: “Events, dear boy. Events. “And economists and interest rate forecasters face the same challenge. No matter how sophisticated your forecasting model is, unforeseen events have a nasty habit of occurring and making you look silly.

So it is never safe to assume that the markets will be calm. However, it wouldn’t be surprising if those influencing mortgage rates stayed that way until Friday, at least.

For more background, read on Saturday weekend edition this column.

Mortgage Rates and Inflation: Why Are Rates Rising?

Recently

The general trend in mortgage rates was clearly declining for much of 2020. And according to Freddie Mac, a new weekly all-time low was hit 16 times in the past year.

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

However, these increases have been largely replaced by decreases since April, albeit typically small. Freddie’s August 19th report builds on this weekly average 2.86% (with 0.7 fees and points), Low from 2.87% the previous week.

Expert predictions for mortgage rates

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

And here are their current interest rate forecasts for the remaining quarters of 2021 (Q3 / 21 and Q4 / 21) and the first two quarters of 2022 (Q1 / 22 and Q2 / 22).

The numbers in the table below apply to 30-year fixed-rate mortgages. Fannies and the MBAs were updated on August 19th. Freddies was last updated on July 15th as these numbers are now only published quarterly.

Forecasters Q3 / 21 Q4 / 21 Q1 / 22 Q2 / 22
Fannie Mae 2.8% 2.9% 3.0% 3.0%
Freddie Mac 3.3% 3.4% 3.5% 3.6%
MBA 2.9% 3.3% 3.5% 3.7%

However, with so many imponderables, current forecasts could be even more speculative than usual.

All of these predictions anticipate higher mortgage rates soon. But the differences between the forecasters are stark. And Fannie may not be involved in curbing Federal Reserve mortgage support while Freddie and the MBA do.

Find your lowest price today

Some lenders have been terrified by the pandemic. And they are limiting their offerings to vanilla-flavored mortgages and refinancing.

But others remain brave. And you can still probably find the refinance, investment mortgage, or jumbo loan you want. All you have to do is look around.

But of course, no matter what type of mortgage you want, you should compare widely. As a federal supervisory authority Consumer protection office says:

Shopping for your mortgage has the potential to result in real savings. It may not sound like a lot, but it does If you save even a quarter interest on your mortgage, you will save thousands of dollars over the life of your loan.

Confirm your new price (August 24, 2021)

Mortgage rate methodology

The mortgage reports receive rates based on selected criteria from multiple credit partners daily. We’ll find an average interest rate and an APR for each type of loan shown on our chart. Since we average a range of prices, this will give you a better idea of ​​what you might find in the market. In addition, we determine average interest rates for the same types of credit. Example: FHA fixed with FHA fixed. The end result is a good snapshot of the daily rates and how they change over time.