It has been a wild roller coaster ride for mortgage interest rates!  On March 9th rates took a sudden drop, sparking a refinance boom like lenders have never seen.  Loan Officers were taking calls into the nighttime hours as borrowers were trying to take advantage of the drop.  Within 2 days, those low rates were gone, and rates spiked from 2.875% on a 30 year fixed rate loan to 4.00%!!  Within 48 hours.  It was crazy.  Then rates started trickling back down and within 2 weeks, by the end of March, mortgage interest rates were back down to around 3.0%.  They have held there for the most part since, and the refinance boom has continued.  What will they do in the future?  No one knows, but as long as they last, it is a great time to buy or refinance!

Mortgage rates rose again this week as lenders increased prices to help manage skyrocketing refinance demand. This is expected to be a short-term phenomenon as lenders work through their backlog. On the purchase front, daily loan purchase applications were rising as of mid-February but started to decline last Friday.

Mortgage Interest Rates continue their decline.  They are officially at the lowest level than they have ever been since they began tracking them 50 years ago.  Nervousness about the Coronavirus is spooking investors in the stock market, driving more money into bonds.  As such, mortgage rates have dropped to all time lows.  It’s crazy town in the mortgage industry right now.  Great time to buy or refinance!!!

Mortgage Interest Rates fell to the lowest level in three months and are only about a quarter point above all-time lows!  The very low rate environment has clearly had an impact on the housing market as both new construction and home sales have surged in response to the decline in rates, the rebound in the economy and improving financial market sentiment.  Buckle up for a busy mortgage and real estate season!!!

Mortgage rates inched up by one basis point this week. By all accounts, mortgage rates remain low and, along with a strong job market, are fueling the consumer-driven economy by boosting purchasing power, which will certainly support housing market activity in the coming months. While the outlook for the housing market is positive, worsening homeowner and rental affordability due to the lack of housing supply continue to be hurdles, and they are spreading to many interior markets that have traditionally been affordable.

The 30-year fixed-rate mortgage rate saw little change again this week and averaged just 3.9% during 2019, the fourth lowest annual average level since 1971 when Freddie Mac started its weekly survey. Heading into 2020, low mortgage rates and the improving economy will be the major drivers of the housing market with steady increases in home sales, construction and home prices. While the outlook for the housing market is bright, worsening housing affordability is no longer a coastal phenomenon and is spreading to many interior markets and it is a threat to the continued recovery in housing and the economy.

The economy continued to pick up momentum with a solid increase in residential construction, improvement in industrial output in our nation’s factories and a rise in job openings. While the economy is in a sweet spot, improvements in housing market sales volumes will be modest heading into next year simply due to the lack of available inventory. If there was more inventory of unsold homes for buyers to choose from, home sales would be rising at a faster rate.

Mortgage Rates moved lower last week.  Whereas it was a bit easier to be dismissive about recent improvements, they’re starting to add up at this point.  Granted, we’re not talking about anything other than a return to the rates seen on November 6th, but for anyone who was rate shopping the week before, this is a welcome change.

As if often the case on Thursdays, there is a major discrepancy between much of what rates are now to what the media is saying.  Specifically, whereas I’m telling you rates are lower, the average major media outlet is saying rates are HIGHER last week.

Why does the media get it wrong on Thursdays?  Reporters are simply citing Freddie Mac’s weekly mortgage rate survey data which comes out on Thursday, but typically only captures rate quotes from the beginning of the week, usually on Monday.  That means it didn’t account for the big spike in rates on Thursday and Friday the week before, nor for the recovery in rates seen over Thursday and Friday of the current week.  As usual, if you need to know what rates are doing on a specific day, don’t rely on the media.  Call me for your accurate rate quote.