For the week of March 16, 2020
Recap of last week: Rates rose higher
Despite media reports promoting lower mortgage rates, rates were actually much higher to end the week than on Monday. Rates were volatile, and mortgage bonds, the underlying foundation of mortgage rates, ended the week much worse than when the week started.
Mortgage Rate Forecast: Rates will be volatile
Once again borrowers should be careful not to try and catch rates at their lowest, because they could miss out altogether as rates rise. Mortgage lenders are at or near full capacity, and are increasing rates to slow down volume. 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:
- The Fed: The Fed rate cut does NOT make mortgage rates lower, however the Fed also rolled out quantitative easing, which will help rates over time.
- 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.
