Mortgage Rates Move to “Calmer Seas”

Mortgage rates remained steady, according to the most recent Freddie Mac Primary Mortgage Market Survey. According to the survey, the 30-year fixed-rate mortgage averaged 4.08 percent with an average 0.5 point for the week ending April 4, 2019, up from the previous week when it averaged 4.06 percent, while the -year fixed-rate mortgage averaged 3.56 percent with an average 0.4 point, down from the previous week when it averaged 3.57 percent.

In a statement, Sam Khater, Freddie Mac’s Chief Economist, said, “Purchase mortgage application demand saw the second highest weekly increase over the last year and thanks to a spike in refinancing activity, overall mortgage demand rose to the highest level since the fall of 2016.”

Khater continued, “While the housing market has faced many head winds the last few months, it sailed through the turbulence to calmer seas with demand buttressed by a strong labor market and low mortgage rates. The benefits of the decline in mortgage rates that we’ve seen this year will continue to unfold over the next few months due to the lag from changes in mortgage rates to market sentiment and ultimately home sales.”

Realtor.com Chief Economist Danielle Hale also noted the recent headwinds, and noted the possibility of future price jumps for first-time buyers.

“Mortgage rates ticked slightly higher this week to 4.08 percent, following the largest weekly decline in a decade last week,” said Hale. “But rates remain more than a quarter of a percentage point below last year. In addition to lower mortgage rates, more homes for sale and wage gains should provide strong tailwinds for would-be home buyers this season as they face a headwind of rising prices. First time buyers looking for entry level homes will see the largest price jumps as the market favors sellers due to limited inventory. Those shopping for pricier homes will generally find a more buyer-friendly market and buyers may even have some negotiating power.”