Mortgage rates stabilise

As suggested in last week’s Mortgage rates after the collapse of bond yields the 30-year Fixed rate Mortgage (FRM) did not follow the further collapse in the yield on th 10-year Treasury – which itself reversed later in the week.

The Freddie Mac weekly survey actually saw an increase in the FRM from 3.29% to 3.37%.

There would appear to be two main reasons for the stabilising of rates: lenders are overwhelmed by refinancing requests and are keeping rates up to slow demand; and the buyers of mortgage-backed securities – the ultimate determinant of rates – are balking at lower rates.

The FRM remains very close to all-time lows and we may have seen the actual bottom, but it is unlikely that rates will rise significantly any time soon.

Recession and Recovery
Mortgage rates after the collapse of bond yields

Andrew Oliver

REALTOR®

Sagan Harborside Sotheby’s International Realty
One Essex Street | Marblehead, MA 01945
m 617.834.8205

www.OliverReports.com
[email protected]

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