March 22 PM! The first day in the afternoon, that we felt a slight bounce back from the rate deterioration that’s we’ve been experiencing for many, many, days now. Why? Because of the backlash felt from overseas investors (specifically from Germany) purchasing mortgage bonds driving the price up and the rate down, as they were experiencing a 5 day hard lockdown due to COVID issues. This betterment has nothing to do with our economy improving. Today is March 23 and the rate improvement at 10:45 seems to be continuing. Below is what happened last up until last Thursday.
Rates continue to rise in the past week. For the week ending March 18, Freddie Mac announced that 30-year fixed rates increased to 3.09% from 3.05% the week before. The average for 15-year loans rose to 2.40% and the average for five-year ARMs increased to 2.79%. A year ago, 30-year fixed rates averaged 3.65%, over 0.50% higher than today. Attributed to Sam Khater, Chief Economist, Freddie Mac – “As expected, rates on home loans continued to inch up but are still hovering around three percent, keeping interested buyers in the market. However, residential construction has declined for two consecutive months and given the very low inventory environment, competition among potential homebuyers is a challenging reality, especially for first-time homebuyers.” Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.