{"id":25876,"date":"2026-02-23T02:00:09","date_gmt":"2026-02-23T02:00:09","guid":{"rendered":"https:\/\/finderica.com\/?p=25876"},"modified":"2026-02-23T02:00:09","modified_gmt":"2026-02-23T02:00:09","slug":"mortgage-rates-today-friday-february-20-a-noticeable-jump","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=25876","title":{"rendered":"Mortgage Rates Today, Friday, February 20: A Noticeable Jump"},"content":{"rendered":"
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Mortgage interest rates are higher this morning, and though we’re still in exceptionally low territory, it might not last much longer. <\/span><\/p>\n<\/div>\n

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The average interest rate on a 30-year, fixed-rate mortgage jumped to 5.92% APR, according to rates provided to SS by Zillow. This is 15 basis points higher than yesterday but still two basis points lower than a week ago. (See our chart below for more specifics.) A basis point is one one-hundredth of a percentage point.<\/span><\/p>\n<\/div>\n

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Last Friday, unexpectedly positive inflation data brought on a significant rate drop. This morning, however, different inflation data came in that may be bad news for mortgage rates \u2014 get the scoop below the graph.<\/span><\/p>\n<\/div>\n

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While the economy never sleeps, markets are closed on the weekends. The rates you see Friday are unlikely to change much (if at all) until Monday.<\/span><\/p>\n<\/div>\n

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Average mortgage rates, last 30 days<\/span><\/span><\/h3>\n<\/div>\n

\ud83d\udcc9 When will mortgage rates drop? <\/span><\/h2>\n
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Mortgage rates are <\/span>constantly changing,<\/span><\/span> since a major part of <\/span>how rates are set<\/span><\/span> depends on reactions to new inflation reports, job numbers, Fed meetings, global news … you name it. For example, even tiny changes in the bond market can shift mortgage pricing.<\/span><\/p>\n<\/div>\n

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Last week, mortgage rates dropped in a somewhat outsized reaction to better-than-expected inflation data from the January <\/span>Consumer Price Index<\/span> (CPI) released Feb. 13. That party could only last so long though, since today we got new data on a different measure of inflation, personal consumption expenditures (better known as PCE).<\/span><\/p>\n<\/div>\n

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It’s not a perfect apples-to-apples comparison between these two data sets. They measure inflation differently, and since last fall’s shutdown has the Bureau of Economic analysis running behind, today’s PCE numbers were from December. Still, these are close enough that we could call it a Granny-Smith-to-Red-Delicious comparison. They’re different, but they’re both apples. <\/span><\/p>\n<\/div>\n

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And if that’s the case, PCE is the mealy Red Delicious. Both the overall and core numbers came in higher than some expected. (Core PCE cuts out food and energy, which can be erratic.) Core PCE had a 3% year-over-year increase. Meanwhile, the Federal Reserve targets a 2% rate of inflation \u2014 and the central bankers prefer PCE to CPI as a more accurate indicator.<\/span><\/p>\n<\/div>\n

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The Fed pumps the brakes on inflation by raising the <\/span>federal funds rate<\/span>, hoping higher borrowing costs discourage spending. But way before the central bankers make any decision (their next meeting is Mar. 17-18), mortgage rates could start moving higher if hopes of a spring or early summer rate cut start to dwindle. <\/span><\/p>\n<\/div>\n

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Even without PCE, the forecast for the low rates parade was looking rainy. Minutes from the Federal Reserve’s January meeting, which were released on Wednesday, showed that inflation remains a significant concern for the central bankers. They <\/span>voted to hold the funds rate steady<\/span> in January, but looking ahead, there were three camps: Those who felt future rate cuts were likely, those who thought the current rate would be maintained for a while, and a group that was open to the possibility of raising rates. <\/span><\/p>\n<\/div>\n

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That third group, which judged that “upward adjustments to the target range for the federal funds rate could be appropriate if inflation remains at above-target levels,” got markets’ attention. We’d all kind of been assuming that the argument was hold versus cut, and rate hikes weren’t really on the table. While the Fed raising the funds rate is still pretty unlikely (markets don’t see it happening), this inflation news is likely to further dampen enthusiasm for cuts.<\/span><\/p>\n<\/div>\n

\ud83d\udd01 Should I refinance?<\/span><\/h2>\n
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Refinancing might make sense if today\u2019s rates are at least 0.5 to 0.75 of a percentage point lower than your current rate (and if you plan to stay in your home long enough to break even on closing costs). <\/span><\/p>\n<\/div>\n

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With rates where they are right now, you could start considering a refi if your current rate is around 6.42% or higher.<\/span><\/p>\n<\/div>\n

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Also consider your goals: Are you trying to lower your monthly payment, shorten your loan term or turn home equity into cash? For example, you might be more comfortable with paying a higher rate for a <\/span>cash-out refinance<\/span><\/span> <\/span><\/span>than you would for a rate-and-term refinance, so long as the overall costs are lower than if you kept your original mortgage and added a HELOC or home equity loan. <\/span><\/p>\n<\/div>\n

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If you’re looking for a lower rate, use SS’s <\/span>refinance calculator<\/span><\/span> to estimate savings and understand how long it would take to break even on the costs of refinancing.<\/span><\/p>\n<\/div>\n

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There is no universal \u201cright\u201d time to start shopping \u2014 what matters is whether you can comfortably afford a mortgage now at today\u2019s rates.<\/span><\/p>\n<\/div>\n

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If the answer is yes, don\u2019t get too hung up on whether you could be missing out on lower rates later; you can refinance down the road. Focus on getting <\/span>preapproved<\/span><\/span>, comparing lender offers, and understanding what monthly payment works for your budget.<\/span><\/p>\n<\/div>\n

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SS\u2019s <\/span>affordability calculator<\/span><\/span> can help you estimate your potential monthly payment. If a new home isn\u2019t in the cards right now, there are still things you can do to strengthen your buyer profile. Take this time to pay down existing debts and build your down payment savings. Not only will this free up more cash flow for a future mortgage payment, it can also get you a better interest rate when you\u2019re ready to buy. <\/span><\/p>\n<\/div>\n

\ud83d\udd12 Should I lock my rate?<\/span><\/h2>\n
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If you already have a quote you\u2019re happy with, you should consider <\/span>locking your mortgage rate<\/span><\/span>, especially if your lender offers a float-down option. A float-down lets you take advantage of a better rate if the market drops during your lock period.<\/span><\/p>\n<\/div>\n

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Rate locks protect you from increases while your loan is processed, and with the market forever bouncing around, that peace of mind can be worth it.<\/span><\/p>\n<\/div>\n

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\ud83e\udd13 <\/span>Nerdy Reminder:<\/span><\/span> Rates can change daily, and even hourly. If you\u2019re happy with the deal you have, it\u2019s okay to commit.<\/span><\/p>\n<\/div>\n<\/div>\n

\ud83e\uddd0 Why is the rate I saw online different from the quote I got?<\/span><\/h2>\n
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The rate you see advertised is a <\/span>sample rate<\/span><\/span> \u2014 usually for a borrower with perfect credit, making a big down payment, and paying for <\/span>mortgage points<\/span><\/span>. That won’t match every buyer’s circumstances.<\/span><\/p>\n<\/div>\n

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In addition to market factors outside of your control, your customized quote depends on your:<\/span><\/p>\n<\/div>\n

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