For the week of March 9, 2020
Recap of last week: Rates were volatile but generally improved
Mortgage rates were erratic as lenders dealt with overwhelming numbers of new applications after rates dropped in recent weeks. Last week though rates were generally better than the previous week.
Mortgage Rate Forecast: Rates will be volatile
Despite media reports and the emergency Fed policy rate cut, mortgage rates are not likely to fall much from here in the near term. Borrowers should be careful not to try and catch rates at their lowest, because they could miss out altogether if rates rise suddenly. Mortgage lenders are at or near full capacity, and are not likely to lower rates much until the volume slows down. Talk with your mortgage professional about these low rates and find out what you should do to take advantage before rates rise.
What's affecting rates this week:
- Markets: The global stock market sell-off has driven investors to the safety of bonds, which helps keep mortgage rates at historic lows.
- Lender capacity: Lenders, appraisers, and support staff are all at maximum capacity, making further rate improvements unlikely in the near term. Many lenders increasing rates to discourage new applications. Talk with your mortgage professional for more details.
