Today's Mortgage Rates

Only a slight fade for mortgage rates this week, but any downward movement sets a new record low.

Freddie Mac reported today that the averaged offered rate for a conforming 30-year fixed-rate mortgage fell by just one basis point (0.01%) to 2.80%, but that was good enough for another new record low. Conforming fifteen-year FRMs dropped into new record low territory, too, with the average offered rate sliding by two basis points (0.02%) to 2.33% for the week. The initial fixed interest rate for a 5/1 hybrid ARM did manage a decline of three hundredths of a percentage point (0.03%) to 2.87%, but with fixed-rate loans so cheap, it's hard to find any consumers interested in ARMs.

Mortgage rates are mostly milling about, waiting for something to help them move in one direction or the other, be that a new fiscal stimulus bill, some clarity as to the expected election outcome, prospects for a COVID-19 vaccine or other trigger event. With none readily evident and the timing of any outcomes unclear, interest rates are likely to continue hanging around present levels in the coming days.

As has been the case, though, the key-for-mortgages yield on the 10-year Treasury has been firmer of late than it has been in months. However, secondary market purchase quotes for mortgages have been holding fairly flat. Certain risks of making and servicing mortgages has declined a bit in recent weeks, so the "risk premium" applied to mortgage pricing has diminished a bit. This has allowed mortgage rates to fall a little but even as there is some underlying upward pressure.

Record low mortgage rates (again) might be a reason to refinance. If you're not sure if a refinance works for you, why not try our Should I Refinance Calculator to see if it makes sense?

We track and discuss economic conditions that affect mortgage rates and their impact on housing markets and consumers in each week's MarketTrends newsletter. Read the most recent edition on HSH.com or subscribe for email delivery.