The year-long slide in mortgage rates seems to be ending as rates have flattened over the last month and the economic rebound has slowed. But with near record low rates, buyer demand remains robust with strong first-time buyers coming into the market. The demand is particularly strong in more affordable regions of the country such as the Midwest, where home prices are accelerating at the highest rates over the last two decades.
This year has been anything but normal in so many ways.? Uncertainty in the economy lingers and thus mortgage interest rates remain near record lows.? We are seeing a refinance boom like none before.? Not only that, but these rates continue to incentivize potential buyers and the home buying season, which shifted from spring to summer, will likely continue into the fall.
Homebuyer demand remains strong, especially for those in search of an entry-level home where the improvement in affordability via lower mortgage rates has a material impact. Even with this week?s uptick, very low rates are providing a significant boost to the housing market that continues to hold up well during this time of uncertainty.
Mortgage rates fell below 3.0% for the first time in 50 years!! The drop has led to increased home buyer demand and refinance boom like none ever seen. These low rates have been capitalized into asset prices in support of the financial markets. However, the countervailing force for the economy has been the rise in new Covid-19 virus cases which has caused the economic recovery to stagnate, and this economic pause puts many temporary layoffs at risk of becoming permanent job losses.? Crazy times!!!
The summer is heating up as record low mortgage rates continue to spur homebuyer demand.? And refinancing continues to bubble over.? However, it remains to be seen whether the demand will continue if COVID cases rise to the point that it hinders economic growth.? Crazy times, unpredictable!!!!!!
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!!!
With mortgage rates hovering near a five-decade low, refinance application activity is once again surging, rising to the highest level in seven years. This surge coupled with strong purchase activity means that total mortgage demand remains robust, reflective of a solid economic backdrop and a very low mortgage rate environment.
This week’s mortgage rates were the second lowest in three years, supporting home buyer demand and leading to higher refinancing activity. Many people are taking advantage of the low rates, lowering their interest rate, shortening their loan term and taking cash out of the equity in their home.? Mortgage lenders are busy!