What Are Today's Mortgage Rates?
Mortgage rates change daily, although those fluctuations tend to be small; you'll find comfort in knowing when it's a great time to lock in a rate. In the table below, you see the current rates from mortgage providers featured on Investopedia.
What will my Mortgage Rate be Tomorrow?
Just like the stock market, predicting what mortgage rates will be tomorrow with 100% accuracy is impossible. Mortgage rates are driven by a variety of economic factors, including housing and mortgage market conditions, economic growth, monetary policy, and the bond market. (For more read The Most Important Factors that Affect Mortgage Rates).
Below are the key economic indicators that analysts track in order to try to get a sense of where mortgage rates are heading:
U.S MBA 30-Yr Mortgage Rate
United States Building Permits
Building permits are expected to drop to around 1,141,000 in the next 12 months. For the long term, permits are projected to go up to 1,315,000 by 2020. The housing market is sensitive to economic conditions. A decrease in building permits is generally an early indicator of economic slowdown. In the case of economic growth, an increase in building permits can signal that the economy is expanding.
Annual GDP Growth Rate
Global macro models and analysts expectations from Trading Economics show the GDP Growth rate
is projected to average around 1.9% in the next 12 months and will be around 2% in 2020. Growth's impact on mortgage rates can be seen via long-term Treasury yields and mortgage-backed securities (MBS). (For more read: It's All Related: Interest, Mortgages, the Economy
United States Fed Funds Rate
Feds Funds Rate is expected to increase to 1.50% in the next 12 months and to 2.25% by 2020. Mortgage rates are not directly pegged to the Federal Funds Rates, but generally the two rates move in the same direction. An increase in the Federal Funds rates is usually followed by an increase in mortgage rates. (For more read: How The Federal Reserve Affects Mortgage Rates
Important events this coming week
Stay tuned to important events happening throughout the week that potentially could affect the forecast of interest rates, especially in the short term.
The Bottom Line
Shopping for mortgage rates can be tough. Keep in mind the marketplace offers multiple types of mortgages, two of the most popular are fixed-rate and adjusted-rate. Determining which one suits you best will depend on your time horizon, preferences, and goals. Economic forecasts should not be the only information future home-buyers consider. (For more read: Fixed Or Variable-Rate Mortgage: Which Is Better Right Now?)