Freddie Mac released mortgage rate data on March 14 showing a 0.4 point drop in 30-year fixed rate average, from 4.41% to 4.31% according to Washington Post. 0.4 points are equal to 1% of the home loan rates amount. The 30-year fixed rate has never been this low since 2018.
Some of the factors that have resulted in the drop are an unsatisfactory report on employment and Britain and European’s failure to settle issues on Brexit. Also, consumers price levels failed to meet the expectations of the analyst.
The Treasury’s 10-year yield dropped at its lowers at the beginning of this year with 2.61 percent. When yield decreases, most often than not, home loan follows. Consumers have little growth expectations which increased the demand to have safer equity like bonds. Long-term bonds’ movement can be a good sign of mortgage rate’s future.
Home Loan Rates Predictions
Jim Sahnger who is a C2 Financial mortgage planner tells that mortgage rates would not probably change. The same prediction came from Bankrate.com which publishes mortgage rate trend index every week. This is based on three-quarter survey results from experts. Business investors also see that the rates will remain stable until after the Federal Reserve’s meeting.
Further, Sanger said, “We saw a little bump down in rates from last week, following a disappointing read on the employment report where job growth stalled and favorable reads on inflation numbers.” He further added, “We do have a Fed meeting next week and all eyes and ears will await the statement. Look for dovish comments based on the global outlook for growth. Rates should stay tight going into the meeting and we’ll see where they head after it.”
Loan Applications Increased
Meanwhile, the Mortgage Bankers Association announced that there has been a two percent increase in home loan applications. MBA president and CEO Bob Broeksmit said, “Along with the healthy labor market, the steady decline in mortgage rates so far in 2019 — now at levels not seen since last February — is setting the stage for what we expect to be a solid spring buying season. Purchase activity has now increased year-over-year for four straight weeks.” Keywords: mortgage rates chart, mortgage rate calculator, mortgage rates trend, mortgage interest rates forecast, mortgage interest rates trend, refinance mortgage rates