Mortgage rates fell once more to support a pickup in demand. Rising house prices amidst a shortage of housing supply remains an issue, however.
Mortgage rates fell for the third consecutive week in the week ending 22nd April. Following a 9-basis points decline from the week prior, 30-year fixed rates fell by 7 basis points to 2.97%.
Compared to this time last year, 30-year fixed rates were down by 36 basis points.
30-year fixed rates were still down by 197 basis points since November 2018’s last peak of 4.94%.
Notably, mortgage rates fell back below the 3% mark.
It was quiet first half of the week on the U.S economic calendar.
There were no major stats from the U.S to influence U.S Treasury yields and mortgage rates in the week.
While there were no stats, a rise in new COVID-19 cases globally tested support for riskier assets in the week.
The weekly average rates for new mortgages as of 22nd April were quoted by Freddie Mac to be:
According to Freddie Mac,
For the week ending 16th April, the rates were:
Weekly figures released by the Mortgage Bankers Association showed that the Market Composite Index, which is a measure of mortgage loan application volume, increased by 8.6% in the week ending 16th April. In the week prior, the index had fallen by 3.7%.
The Refinance Index jumped by 10.0% and was 23% lower than the same week a year ago. The index had fallen by 5.0% in the week prior.
In the week ending 16th April, the refinance share of mortgage activity increased from 59.2% to 60.0%. In the previous week, the share had decreased from 60.3% to 59.2%.
According to the MBA,
It’s a quiet first half of the week on the U.S economic calendar. Core durable goods and durable goods orders are in focus along with consumer confidence figures.
Expect core durable goods and consumer confidence to have the greatest impact on yields.
Mid-week, the FED delivers its April monetary policy decision. With the markets expecting the FED to stand pat on policy, the rate statement will be the key driver.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.