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Mortgage And Refinance Rates, Dec. 15

Today’s mortgage and refinance rates

Average mortgage rates just inched higher yesterday. That was a wonderful surprise because I’d feared a much sharper increase.

Mortgage rates today were barely moving by approaching 10 a.m. (ET). But there may be grounds for hoping for falls later as economic news this morning fell short of expectation.

Current mortgage and refinance rates

Program Mortgage Rate APR* Change
Conventional 30 year fixed 6.241% 6.274% Unchanged
Conventional 15 year fixed 5.568% 5.625% -0.06%
Conventional 20 year fixed 6.086% 6.14% Unchanged
Conventional 10 year fixed 5.829% 5.949% +0.01%
30 year fixed FHA 6.129% 6.872% -0.02%
15 year fixed FHA 5.68% 6.173% -0.07%
30 year fixed VA 5.832% 6.06% -0.04%
15 year fixed VA 5.947% 6.303% -0.05%
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.

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.

Yesterday’s Federal Reserve activities didn’t bring the sharp increase in mortgage rates that I feared. The danger isn’t quite over yet because sometimes markets have delayed reactions to such events. But, if things remain positive into next week, I may be able to reinstate some green “float” recommendations in the following list.

But, for now, 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 fell to 3.46% from 3.50%. (Good for mortgage rates.) However, those yields were rising this morning. More than any other market, mortgage rates typically tend to follow these particular Treasury bond yields
  • Major stock indexes were appreciably lower soon after opening. (Sometimes good for mortgage rates.) When investors buy shares, they’re often selling bonds, which pushes those prices down and increases yields and mortgage rates. The opposite may happen when indexes are lower. But this is an imperfect relationship
  • Oil prices inched down to $76.75 from $76.87 a barrel. (Neutral for mortgage rates*.) Energy prices play a prominent role in creating inflation and also point to future economic activity
  • Gold prices decreased to $1,794 from $1,823 an ounce. (Bad for mortgage rates*.) It is generally better for rates when gold rises and worse when gold falls. Gold tends to rise when investors worry about the economy.
  • CNN Business Fear & Greed index — tumbled to 55 from 68 out of 100. (Good 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 movement of less than $20 on gold prices or 40 cents on oil ones is a change of 1% or less. 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 were close to steady earlier. However, be aware that “intraday swings” (when rates change speed or 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 broader 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 the coming hours, days, weeks or months.

Are mortgage and refinance rates rising or falling?


Yesterday’s Federal Reserve events played out pretty much as expected. It hiked the federal funds rate by 50 basis points (0.5%). And the “dot plot” (future rate forecasts) in its summary of economic projections (SEP) showed rates staying higher for longer than previously expected.

That was the recipe that I thought would deliver significantly higher mortgage rates. But it didn’t. So, what else played a part?

Well, it seems to have been Fed Chair Jerome Powell’s news conference 30 minutes after the SEP was published. Because, according to the Fed’s transcript, he said:

” … these [dot plot] projections do not represent a Committee decision or plan, and no one knows with any certainty where the economy will be a year or more from now. Our decisions will depend on the totality of incoming data and their implications for the outlook for economic activity and inflation. And we will continue to make our decisions meeting by meeting and communicate our thinking as clearly as possible.”

In other words, Mr. Powell told markets effectively to take the dot plot with a shovelful of salt. And that seemed to be enough to turn them around as investors were persuaded that the day’s Fed news wasn’t so bad after all.

There remains a question mark about whether this belief sticks. It often takes markets hours or days for them to reflect fully on a new situation. And we can’t yet rule out a late rise in mortgage rates as investors mull over what’s really happening.

However, I’m hopeful (something I’ve written rarely this year) that we won’t see the sharp rise in mortgage rates I feared yesterday morning. Still, I shouldn’t be surprised if they drifted somewhat higher over the next few months.

Today’s economic data

This morning’s economic reports for November were disappointing, something that could help mortgage rates. Economists and analysts polled by MarketWatch had expected retail sales to fall by 0.3% that month, but the actual figure was -0.6%. Meanwhile, industrial production and capacity utilization for the same month also fell slightly short of expectations.

As I repeat daily, mortgage rates tend to fall when the economy’s in trouble and rise when it’s doing well. So today could turn out to be a good one for those rates.

For more background, please read the latest weekend edition of this report.

According to Freddie Mac’s archives, the weekly all-time low for mortgage rates was set on Jan. 7, 2021, when it stood at 2.65% for conventional, 30-year, fixed-rate mortgages.

Freddie’s Dec. 8 report put that same weekly average at 6.33%, down from the previous week’s 6.49%.

Recently, Freddie stopped including discount points in its forecasts. It has also moved later in the day the time at which it publishes its Thursday reports. And, from now on, we’ll be updating this section on Fridays.

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 rate forecasts for the current quarter (Q4/22) and the first three quarters of next year (Q1/23, Q2/23 and Q3/24).

The numbers in the table below are for 30-year, fixed-rate mortgages. Fannie’s forecast appeared on Nov. 22, the MBA’s on Nov. 23 and Freddie’s on Oct. 21. Freddie now publishes its forecasts quarterly and its figures can quickly become stale.

Forecaster Q4/22 Q1/23 Q2/23 Q3/23
Fannie Mae 7.0% 7.0%  6.9% 6.7%
Freddie Mac 6.8% 6.6%  6.5% 6.4%
MBA 6.7% 6.2%  5.6% 5.4%

Of course, given so many unknowables, the whole current crop of forecasts might be even more speculative than usual. And their past record for accuracy hasn’t been wildly impressive.

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.

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