Mortgage and refinance rates today, March 11, 2022

Today’s mortgage and refinance rates

Average mortgage rates rose modestly yesterday. And they’re now at their highest in nearly three years. But, of course, those rates remain exceptionally low by historical standards.

Unfortunately, mortgage rates today look likely to rise again. But, during these volatile times, that could change.

Current mortgage and refinance rates

Should you lock a mortgage rate today?

Don’t lock on a day when mortgage rates look set to fall. My recommendations (below) are intended to give longer–term suggestions about the overall direction of those rates. So, they don’t change daily to reflect fleeting sentiments in volatile markets.

Even when they’re climbing over the long term, we’ll inevitably see periods when those rates dip. And these drops are helpful if you get a chance to take advantage of one. But I wouldn’t wait for them. For now, I suspect, increases will continue to outweigh decreases. And delaying locking in the hope of sustained falls is potentially damaging to your interests.

So, my personal rate lock recommendations for the longer term 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 2.02% from 1.98%. (Bad for mortgage rates.) More than any other market, mortgage rates normally tend to follow these particular Treasury bond yields
• Major stock indexes were 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 fell to $107.56 from $112.46 a barrel. (Good for mortgage rates*.) Energy prices play a large role in creating inflation and also point to future economic activity
• Gold prices decreased to $1,977 from $2,008 an ounce. (Bad 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 – inched up to 16 from 15 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 might move higher. However, be aware that “intraday swings” (when rates change direction during the day) are a common feature right now.

Important notes on today’s mortgage rates

Here are some things you need to know:

1. 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’
2. Only “top–tier” borrowers (with stellar credit scores, big down payments and very healthy finances) get the ultralow mortgage rates you’ll see advertised
3. 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
4. When daily rate changes are small, some lenders will adjust closing costs and leave their rate cards the same
5. 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 will happen to mortgage rates in coming hours, days, weeks or months.

Are mortgage and refinance rates rising or falling?

Yesterday’s February consumer price index (CPI) showed year–over–year inflation running at a 40–year high. And that was before Russia’s invasion of Ukraine piled on a massive amount of extra inflationary pressure. So you have to shudder to imagine what this month’s figures will show when they’re published in April.

The Federal Reserve has two primary duties. To:

1. Maintain inflation at around the 2% mark
2. Keep unemployment low

Well, it’s done a bang–up job on the second of those. But yesterday’s CPI rate was 7.9%, roughly four times the Fed’s target figure – and heading upward.

So the Fed’s under enormous and growing pressure to tackle inflation. But, unfortunately, the anti–inflationary measures it has at its disposal are almost bound to push mortgage rates higher.

Markets know this and have to some extent baked that expectation into their current rate pricing. But nobody yet knows how much extra inflation the war in Ukraine will add.

With luck, we’ll see mortgage rates rise only gradually over the coming months. But we certainly can’t rule out sharper rises. Unfortunately, it’s hard to imagine sustained falls.

Yesterday, Freddie Mac Chief Economist Sam Khater took a similar view when he wrote in a statement:

Over the long–term, we expect rates to continue to rise as inflation broadens and shortages increasingly impact many segments of the economy. However, uncertainty about the war in Ukraine is driving rate volatility that likely will continue in the short–term.”

For a more detailed look at what’s happening to mortgage rates, read the latest weekend edition of this report.

Recently

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 that year, according to Freddie Mac.

The most recent weekly record low occurred on Jan. 7, 2021, 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, the rises have grown more pronounced since last September, though not consistently so.

Freddie’s March 10 report puts that weekly average for 30–year, fixed–rate mortgages at 3.85%% (with 0.8 fees and points), up from the previous week’s 3.76%. But that won’t have counted most of the sharp rises on that Tuesday and Wednesday.

Note that Freddie expects you to buy discount points (“with 0.8 fees and points”) on closing that earn you a lower rate. If you don’t do that, your rate would be closer to the ones we and others quote.

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 four quarters of 2022 (Q1/22, Q2/22, Q3/22, Q4/22).

The numbers in the table below are for 30–year, fixed–rate mortgages. Fannie’s were published on Feb. 18 and the MBA’s on Feb. 25. But Freddie now publishes these forecasts every quarter, most recently on Jan. 21.

Forecaster	Q1/22	Q2/22	Q3/22	Q4/22
Fannie Mae	3.5%	3.6%	3.7%	3.7%
Freddie Mac	3.5%	3.6%	3.7%	3.7%
MBA	3.8%	4.0%	4.1%	4.3%

Note that those figures were issued before Russia invaded Ukraine. Of course, 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.”

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.