Mortgage Rates Are Actually Lower This Week!
Mortgage Rates Are Actually Lower This Week!
March 7, 2019
Mortgage rates dropped noticeably today, as the underlying bond market benefited from overseas developments. The European Central Bank (ECB) is Europe's counterpart to the Federal Reserve. Like the Fed, they've also dabbled in bond-buying and ultra-low policy rates. In fact, they still haven't gotten around to hiking rates as a part of the current global economic expansion. Just today, they said they don't expect rates to rise in 2019 and possibly beyond.
Combined with several other comments and updated forecasts, the message from the ECB was that the European economic outlook is downbeat and they'll be keeping the monetary punchbowl on the table as a result. Central banks' easy money policies tend to benefit bonds (which translates to lower rates) and these were no exception.
The net effect was a drop to the lowest rates in more than a weekfor the average lender--a claim that runs counter to several news reports that say rates are higher this week. At issue is the source material for those news reports: Freddie Mac's weekly rate survey, which only tends to capture Monday and Tuesday's rate quotes (and it completely excludes Thursday and Friday of any given week). As such, when there are big moves in the 2nd half of a week (and especially if there are opposing moves in two adjacent weeks, Freddie's survey will likely say rates did the exact opposite of what they're actually doing.
Case in point, last Thu/Fri, rates were rising fairly quickly, but that rise wasn't captured by the Freddie survey. This created a lower baseline for the current week. From there, even though rates began to recover on Mon/Tue this week, they hadn't recovered enough to get back to Mon/Tue levels last week. So the Freddie survey sees and reports rates as being higher. If we look at today's rates versus last Thursday or Friday's however, we see rates are easily in better shape.
Loan Originator Perspective
Bond markets posted minimal gains today, as dovish ECB rhetoric boosted bond demand. My pricing was marginally better than yesterday's. The week's big event tomorrow (NFP jobs report) will further inform where rates head from here. I seldom float into NFP day, and this month isn't any different, I am locking loans closing within 30 days. -Ted Rood, Senior Originator
Today's Most Prevalent Rates
30YR FIXED - 4.375 - 4.5%
FHA/VA - 4.125 - 4.25%
15 YEAR FIXED - 4.0 - 4.125%
5 YEAR ARMS - 4.25 - 4.625% depending on the lender
Ongoing Lock/Float Considerations
Headwinds that had plagued rates for most of the past 2 years began to die down in late 2018. A rapid decline in the stock market certainly helped drive investors into bonds (which helps rates) Highest rates in more than 7 years in Oct/Nov. 8-month lows by the end of the year
This is a bit of a crossroads. The rising rate environment could flare up again. We may look back at Oct/Nov and see a long-term ceiling, or we may look back at early December and see a temporary correction before more pain.
Either way, late 2018 was a sign that rates are willing to take opportunities presented to them. From here, it will be up to economic data, fiscal policies, and the stock market to decide on the next set of opportunities. The rougher the overall outlook, the better interest rates tend to do.
Rates discussed refer to the most frequently-quoted, conforming, conventional 30yr fixed rate for top tier borrowers among average to well-priced lenders. The rates generally assume little-to-no origination or discount except as noted when applicable. Rates appearing on this page are "effective rates" that take day-to-day changes in upfront costs into consideration.
30 Year Fixed Rate Mortgage
15 Year Fixed Rate Mortgage
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Average Mortgage Rates
RatePointsChangeFHFA *15 Yr. Fixed4.22%1.43-0.1230 Yr. Fixed4.78%1.18-0.20
30 Yr. Fixed4.67%0.00+0.0215 Yr. Fixed0.00%0.00-4.0030 Yr. Jumbo0.00%0.00-4.4030 Yr. FHA0.00%0.00-4.645/1 ARM0.00%0.00-3.95
Freddie Mac **
30 Yr. Fixed4.41%0.50+0.0615 Yr. Fixed3.83%0.40+0.061 Yr. ARM2.68%0.20+0.015/1 Yr. ARM3.87%0.30+0.03Current Mortgage Rates »* FHFA averages are updated monthly.
** Mortgage Bankers Association (each Wednesday) and Freddie Mac (each Thursday) averages are updated weekly.
PriceChange30YR FNMA 3.098.09+0.3330YR FNMA 3.5100.36+0.2730YR GNMA 3.099.11+0.3130YR GNMA 3.5101.14+0.2215YR FNMA 3.099.98+0.1615YR FNMA 2.598.28+0.17
YieldChange2 YR2.4754%-0.03665 YR2.4420%-0.057110 YR2.6411%-0.052330 YR3.0270%-0.0435Prices as of: 3/7/2019 5:05PM ESTCurrent MBS / Treasury Prices »MBS and Treasury data provided by Thomson Reuters.Mortgage News Daily and MBS Live!are exclusive re-distributors of Real Time Thomson Reuters Mortgage Information.Secondary Marketing Managers:
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About This Report
Mortgage News Daily is a trusted source of mortgage rate market data and analysis, with over 1 million readers each month. Unlike many rate surveys, our survey is conducted on a daily basis and is designed to bring you the most current and accurate rate data available. We use a proprietary formula to calculate averages based on best-execution rates from top lender's rate sheets, also taking into account feedback from hundreds of mortgage market professionals around the country.
For more information on rates visit Wavewallet.co