Mortgage rates fell for the third consecutive week in the week ending 22^nd  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.

Economic Data from the Week

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.

Freddie Mac Rates

The weekly average rates for new mortgages as of 22^nd April were quoted by Freddie Mac to be:

• 30-year fixed rates fell by 7 basis point to 2.97% in the week. This time last year, rates had stood at 3.33%. The average fee held steady at 0.7 points.

• 15-year fixed declined by 6 basis points to 2.29% in the week. Rates were down by 57 basis points from 2.86% a year ago. The average fee decreased from 0.7 points to 0.6 points.

• 5-year fixed rates rose by 3 basis points to 2.83%. Rates were down by 45 points from 3.28% a year ago. The average fee fell from 0.4 points to 0.3 points.

According to Freddie Mac,

• The fall in mortgage rates is good news for homeowners who are still looking to take advantage of the very low rate environment,

• Freddie Mac research suggests that lower income and minority homeowners have been less likely to engage in the refinance market.

• Low and declining mortgage rates provide these homeowners the opportunity to reduce their monthly payment and improve their financial position.

Mortgage Bankers’ Association Rates

For the week ending 16^th April, the rates were:

• Average interest rates for 30-year fixed to conforming loan balances decreased from 3.27% to 3.20%. Points increased from 0.33 to 0.36 (incl. origination fee) for 80% LTV loans.

• Average 30-year fixed mortgage rates backed by FHA decreased from 3.24% to 3.15%. Points fell from 0.40 to 0.31 (incl. origination fee) for 80% LTV loans.

• Average 30-year rates for jumbo loan balances decreased from 3.35% to 3.34%. Points decreased from 0.34 to 0.29 (incl. origination fee) for 80% LTV loans.

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 16^th April. In the week prior, the index had fallen by 3.7%.