Mortgage and refinance rates today February 26th


Today’s mortgage and refinancing rates

Average mortgage rates skyrocketed yesterday, rising more than we have seen in a long time. Of course, they are still very low in the historical context.

The markets often correct themselves after sharp moves like yesterday. And that’s what I expect Mortgage rates can fall today but probably humble. However, in such volatile times, markets can change direction quickly and they are certainly nervous right now.

Find and lock a cheap rate (August 3, 2021)

Current mortgage and refinancing rates

program Mortgage rates Effective interest rate* change
Conventional 30 years 3,058% 3,061% + 0.08%
Conventionally fixed for 15 years 2,488% 2,497% Unchanged
Conventional 20 years old 2.983% 2.99% + 0.09%
Conventionally fixed for 10 years 2,567% 2,587% + 0.01%
30 years permanent FHA 2,816% 3,495% + 0.06%
15 years fixed FTA 2,517% 3.1% Unchanged
5 years ARM FHA 2.5% 3.213% + 0.01%
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% 2,392% + 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. View our rate assumptions here.

Find and lock a cheap rate (August 3, 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?

Overnight, CNBC summed up what happened yesterday:

The 10-year US Treasury bond yield [which mortgage rates often shadow] briefly topped 1.6% on Thursday, its highest level in over a year, fueled by expectations of higher economic growth and higher inflation.

We have been highlighting the same two factors for a while. And they didn’t go away.

So my personal rate lock recommendations 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

But with so much uncertainty right now, your instincts could easily prove as good as mine – or better. So let yourself be guided by your gut instinct and your personal willingness to take risks.

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:

  • That 10-year Treasury yield increased from 1.45% to 1.48%. (Normally, bad for mortgage rates. But yesterday’s surge was reflected in yesterday’s rates, and yields are now falling.) More than any other market, mortgage rates usually follow these particular government bond yields, though less recently
  • Important stock indices were mixed when opened. (Neutral 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 happens when the indices are lower
  • Oil prices fell to $ 62.54 from $ 63.02 a barrel. (Good for mortgage rates * there Energy prices play a major role Generate inflation and also point out future economic activity.)
  • Gold prices fell from $ 1,785 an ounce to $ 1,756. (Bad 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 & Greed Index – down from 69 to 59 from 100. (Good 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. The Fed is a big player now and some days it can overwhelm investor sentiment.

Use markets only as a rough guide. Because they need to be exceptionally strong (rates are likely to rise) or weak (they could fall) to be relied on. But with this reservation so far Mortgage rates are likely to fall slightly or remain stable today.

Find and lock a cheap rate (August 3, 2021)

Important information about current mortgage rates

Here are some things you need to know:

  1. The continued intervention of the Fed in the mortgage market (well over $ 1 trillion) should put these rates under further pressure. But it can’t always work miracles. And read “For once, the Fed is influencing mortgage rates. Here’s why”If you want to understand this aspect of what is happening
  2. 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
  3. 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
  4. 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
  5. In the event of minor price changes, some lenders adjust the closing costs and leave their price lists unchanged
  6. 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 etc

I am expect mortgage rates to go down or stay the same today. But as always, that can change during the day. Indeed, such intraday fluctuations have become an irritating feature of the markets. And they’re especially likely at times like these when investors are so shy.

Nothing has changed. And if mortgage rates fall today, these will likely be the markets correcting after rising too sharply yesterday. This is a common phenomenon after exceptional volatility.

So don’t think that such a decline means that the pressures that have been driving these rates up recently have suddenly disappeared. It seems very unlikely to me that they will hit record lows again anytime soon.

In fact, further increases seem more likely for now in the absence of some sudden and very bad economic news.

For more background on my broader thinking, see our latest Weekend editionwhich is released every Saturday just after 10 p.m. (ET).


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 prices went up. And Freddie’s February 25 report puts this weekly average at 2.97%, compared to 2.81% the previous week and the highest level since mid-2020.

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 each quarter of 2021 (Q1 / 21, Q2 / 21, Q3 / 21 and Q4 / 21).

The numbers in the table below apply to 30-year fixed-rate mortgages. Fannies and the MBAs were updated on February 18th and 19th respectively. But Freddie now publishes quarterly forecasts and his numbers are from mid-January:

Forecasters Q1 / 21 Q2 / 21 Q3 / 21 Q4 / 21
Fannie Mae 2.8% 2.8% 2.9% 2.9%
Freddie Mac 2.9% 2.9% 3.0% 3.0%
MBA 2.8% 3.1% 3.3% 3.4%

However, with so many imponderables, current projections can be even more speculative than usual. And there is certainly a widening in spreads over the course of the year.

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 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 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 3, 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. 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. Example: FHA fixed with FHA fixed. The end result is a good snapshot of the daily rates and how they change over time.


About Author

Comments are closed.