Mortgage Rates Decline Over COVID Concerns

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates fell last week from one week earlier. Rates were down across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Joel Kan, MBA's associate vice president of economic and industry forecasting, said rising coronavirus cases were a factor. “Treasury yields fell last week, as investors continue to anxiously monitor if the rise in COVID-19 cases in several states starts to dampen economic activity,” Kan said. “Mortgage rates slightly declined as a result, with the 30-year fixed rate decreasing for the first time in three weeks.” Favorable rates helped push overall demand for mortgage applications 1.6 percent higher than the week before, with refinance activity up 1 percent and the purchase index up 3 percent. The MBA's weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

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