Mortgage And Refinance Charges Right this moment, June 25
Today’s mortgage and refinancing rates
Average mortgage rates fell inches yesterday. Contrary to media reports based on Freddie Mac’s weekly poll, these rates are actually a little lower than last week at this time. But they are much higher than they were two weeks ago.
First thing this morning, it looks like it is again Mortgage rates could stay stable or almost constant today. But a lot happens that could change that later. That includes a new stimulus package deal yesterday and a hot inflation report this morning.
Find and lock a cheap rate (June 26, 2021)
Current mortgage and refinancing rates
|program||Mortgage rates||Effective interest rate*||change|
|Conventionally fixed for 30 years||2,936%||2,936%||Unchanged|
|Conventionally fixed for 15 years||2.25%||2.25%||Unchanged|
|Conventional 20 years old||2.75%||2.75%||Unchanged|
|Conventionally 10 years fixed year||1,944%||1.98%||-0.01%|
|30 years permanent FHA||2,779%||3,437%||Unchanged|
|15 years fixed FTA||2,656%||3,258%||+ 0.03%|
|5 years ARM FHA||2.5%||3.22%||Unchanged|
|30 years of permanent VA||2,375%||2,547%||Unchanged|
|15 years fixed VA||2.25%||2,571%||Unchanged|
|5 years ARM-VA||2.5%||2,399%||Unchanged|
|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. View our rate assumptions here.|
Find and lock a cheap rate (June 26, 2021)
COVID-19 mortgage updates: Mortgage lenders are changing 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?
After the noticeable rises of the past week, this week seems to have settled back into its most recent pattern of only gentle rises and falls. And while you can’t take anything for granted, it can take a while.
Of course there will be good weeks (like this one so far) in which the falls outweigh the climbs. However, many experts assume that these prices will slowly drift upwards for the time being. However, a much stronger increase is to be expected later in the year.
So my personal rate lock recommendations must remain:
- LOCK when close in 7th Days
- LOCK when close in fifteen Days
- LOCK when close in 30th Days
- LOCK when close in 45 Days
- LOCK 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 yesterday were:
- The 10-year Treasury yield Inches up to 1.50% from 1.48%. (Bad for mortgage rates.) More than any other market, mortgage rates usually follow these particular government bond yields, albeit less recently
- 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 increased to $ 73.52 from $ 72.66 a barrel. (Bad for mortgage rates *.) Energy prices play a major role in the development of inflation and also indicate future economic activity.
- Gold prices increased from $ 1.7 to $ 1,78883 an ounce. (Neutral for mortgage ratesIn general, it is better for interest 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 Index – increased from to 44 41 out of 100. (Bad for mortgage rates.) “Greedy” investors push bond prices down (and interest rates up) when they exit the bond market and invest in stocks, while “fearful” investors do the opposite. So lower values are better than higher
* 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 only as a rough guide. Because they have to be exceptionally strong or weak to be able to rely on them. But with this reservation so far Mortgage rates are unlikely to move much 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 (June 26, 2021)
Important information about current mortgage rates
Here are some things you need to know:
- 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
- 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
- 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
- When the daily price changes are small, some lenders adjust the closing costs and leave their price lists unchanged
- 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
Maybe I should take this as a vacation day. Because I’ll let Freddie Mac do the heavy lifting. In a statement yesterday it said:
For the first time in ten weeks, mortgage rates have risen above three percent. If the economy continues and inflation remains high, we expect interest rates to continue to rise gradually in the second half of the year. For homeowners who have not yet refinanced – and there remain many borrowers who could benefit – now is the time.
– Freddie Mac, “Mortgage Rates Rise Over Three Percent,” June 24, 2021
That’s a pretty nice summary of the situation. But I would like to add that it is not just the refinancers who could benefit from quick action. If you’re a first-time buyer or an existing homeowner looking to trade in for a better home, your urgency too.
Because in connection with rapidly rising home prices, higher mortgage rates will make buying a home more and more expensive. And you risk less and less realizing your dreams.
Unless you disagree with Freddies and other expert analysis. Yes, it is always possible that one terrible event could change everything and lower mortgage rates and house prices again. But that’s not very likely.
Mortgage Rates and Inflation: Why Are Rates Rising?
For more background information, see the weekend edition of this Saturday column, which offers more space for in-depth analysis.
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 latest weekly record low was hit on January 7th at 2.65% for 30-year fixed-rate mortgages. But then the trend was reversed and interest rates rose.
However, those rises were largely replaced by falls in April, although these moderated in the second half of this month. Meanwhile, May saw declines that slightly outweighed the increases. Freddie’s June 24 report puts that weekly average at 3.02% (with 0.7 fees and points). above from 2.93% 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 (Q2 / 21, Q3 / 21, Q4 / 21) and the first quarter of 2022 (Q1 / 22).
The numbers in the table below are for 30-year fixed-rate mortgages. Fannies were updated on June 16 and the MBAs on June 18. Freddie’s forecast is dated April 14th, but it is now only updated quarterly. So the numbers look out of date.
|Forecasters||Q2 / 21||Q3 / 21||Q4 / 21||Q1 / 22|
However, with so many imponderables, current forecasts could be even more speculative than usual.
Find your lowest rate 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 likely 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 regulator, the Consumer Financial Protection Bureau says:
Shopping for your mortgage has the potential to result in real savings. It may not sound like much, but if you save only a quarter point in interest on your mortgage, you will save thousands of dollars over the life of your loan.
Confirm your new plan (June 26, 2021)
Mortgage rate methodology
The mortgage report receives interest rates from several credit partners on a daily basis according to selected criteria. We’ll find an average interest rate and an APR for each type of loan shown on our chart. By averaging a number of rates, 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. For example FHA fixed with FHA fixed. The end result is a good snapshot of the daily rates and how they change over time.