8炫彩彩票开户As a surge of homeowners seek to take advantage of historically low mortgage rates, lenders are struggling to keep up. The bottleneck means that, despite market pressures for mortgage rates to go even lower, rates have actually drifted up.
"As refinance applications continue to surge and lenders work to manage capacity, the 30-year fixed-rate mortgage ticked up from last week's all-time low," wrote the government-sponsored mortgage company Freddie Mac said in its weekly report rate report.
The average interest on a 30-year fixed-rate mortgage was 3.36 percent this past week, up from 3.29 percent the week before, according to Freddie Mac. The average rate for a 15-year fixed rate mortgage was 2.77 percent, two basis points lower than the week before.
8炫彩彩票开户The influx of refinance applications has increased dramatically, reaching the highest weekly volume since April 2009, when rates decreased sharply following the subprime mortgage crisis. Last week, lenders received nearly six times the number of applications they had in the same week of last year, the Mortgage Bankers Association reported.
REFINANCING: Rock-bottom rates spur refinancing boom
The volume spike is a marked turnaround from six months ago, when many mortgage lenders were cutting staff as they braced for the higher rates that come with a healthy economy. That has made the unexpected turnaround in rates -- which began in November in response to trade wars and has been magnified recently by fears of the new coronavirus -- even more difficult to service. Mortgage lenders and economists say they've begun hearing anecdotal reports of banks increasing rates in an effort to stem the number of mortgage applications that are coming through their doors.
The wild swings in stock markets, a product of the uncertainty surrounding the coronavirus and its impact, are a major contributor to the plunge in mortgage rates.
8炫彩彩票开户Nervous investors are seeking safer investments and pouring money into government bonds and mortgage debt — much of it backed by Freddie Mac and its sister government-sponsored mortgage company Fannie Mae. Investors are so hungry for security that they are willing accept lower yields, driving the interest paid on bonds and mortgages.
8炫彩彩票开户Because bond and mortgage rates respond to similar stimuli, the yield on a 10-year U.S. Treasury bond and mortgage rates tend to move in lockstep. But while the yields for a 10-year Treasury bond moved lower this week than the week before, mortgage rates, on average, did not.
8炫彩彩票开户"That's an artifact of some of the bottlenecks in processing loans," explained Frank Nothaft, chief economist for the real estate data company CoreLogic. "We haven't seen mortgage rates come down as quickly."