Mortgage Rates Today, Jan. 9 & Rate Forecast For Next Week

Mortgage Rates Today, Jan. 9 & Rate Forecast For Next Week

January 9, 2021 Off By administrator

Today’s mortgage and refinance rates 

Average mortgage rates edged upward again yesterday. So they ended the week appreciably higher than they started it. Still, even after that poor period, they’re still in a range that counts as ultralow.

But, if last week’s trend continues for long, that will stop being the case. So will it? Nobody can be sure. But the risk is very real. And I wouldn’t wager years of higher payments when the likely winnings are so low.

So I’d lock my rate as soon as possible, certainly if I were due to close in the next 30 days. Read on for details.

Find and lock a low rate (Jan 9th, 2021)

Program Mortgage Rate APR* Change
Conventional 30 year fixed 2.75% 2.75% Unchanged
Conventional 15 year fixed 2.313% 2.313% Unchanged
Conventional 5 year ARM 3% 2.743% Unchanged
30 year fixed FHA 2.5% 3.478% Unchanged
15 year fixed FHA 2.438% 3.38% +0.06%
5 year ARM FHA 2.5% 3.226% Unchanged
30 year fixed VA 2.375% 2.547% +0.07%
15 year fixed VA 2.125% 2.445% Unchanged
5 year ARM VA 2.5% 2.406% Unchanged
Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions here.

Find and lock a low rate (Jan 9th, 2021)

COVID-19 mortgage updates: Mortgage lenders are changing rates and rules due to COVID-19. To see the latest on how coronavirus could impact your home loan, click here.

Should you lock a mortgage rate today?

If I were waiting to close, I’d lock now. But I’m naturally cautious. And, if you’re more comfortable with risk than I am, you could wait to see how things play out, especially if you’re not due to close for a month or so.

Before you decide, read the next section, which lays out what’s going on. But, for now, my personal recommendations are:

  • LOCK if closing in 7 days
  • LOCK if closing in 15 days
  • LOCK if closing in 30 days
  • FLOAT if closing in 45 days
  • FLOAT if closing in 60 days

However, with so much uncertainty at the moment, your instincts could easily turn out to be as good as mine — or better. So be guided by your gut and your personal tolerance for risk.

What’s moving current mortgage rates

We’re about to see a conflict between two opposing forces. On one side, the new administration — largely unconstrained by Congress — will likely spend and borrow more money than the previous one. And that is very likely to exert upward pressure on Treasury yields and mortgage rates.

But, on the other side, the economy faces many months during which the pandemic, now raging at record levels, will inflict continuing economic damage. And that should exert downward pressure on mortgage rates.

But nobody knows which of those forces will be more influential. And just because the former won last week doesn’t mean it will continue to do so.

More than ever, there are no right or wrong answers over when to lock. And your appetite for risk…

(Excerpt) To read the full article , click here
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