It appears that the mortgage rate has finally had a less-than-stellar week, curbing the enthusiasm of potential buyers despite the fact that long-term projections still favor aggressive borrowing.
During the week of March 7, the 30-year fixed rate mortgage (“FRM”) hovered around 4.41%, which represents a modest increase from the previous week. Similarly, the 15-year adjustable rate mortgage increased marginally to 3.88%.
It is common knowledge that FRMs rise and fall in near lockstep with the 10-year U.S. Treasury Note’s yield, though slightly delayed. Many analysts believe this week’s data probably reflects the uptick in yields as a result of the positive economic information that was released earlier in the week. It appears that lending applications declined over the week of March 7, 2019 as prospective buyers stalled on the hopes of obtaining a loan with favorable rates; this will not be long, as low growth quarters increase the cost of bonds which reduces the overall yield of those bonds.
At the Chernov Team, we understand how important it is to keep up with the weekly trends in the mortgage sector. Whoever shows up to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.