The benchmark 30 Year fixed rate mortgage is already at its lowest level of 2014. During the last weekly rate survey as published by secondary giant Freddie Mac, it was at 4.210%. They started the year just above 4.500% and for the past several months have been hovering around 4.350%. Tomorrow morning an updated weekly survey will be published. Several industry experts have already indicated a slight decline will be the result.
While housing metrics have been mixed, market activity has flattened out and mortgage demand has been tempered. Lenders have been scrambling the last quarter to make sure their operations have been right-sized to handle anticipated demand. Refinance timelines have been reduced from sixty days to thirty days. Purchase activity has been down but pipeline management has held steady to accommodate close of escrow dates.
Even though applications are down one factor which may move rates back up is continued higher than forecast unemployment numbers. With more people able to secure a paycheck the population competing for housing stock increases and the result would be more demand for affordable mortgage money.
As stated the 30 mortgage is down to 4.210% and the 15 year rate is at 3.320%. Both popular programs increase borrower optimism but on the flip side the trend could reverse and send rates to higher levels which could jeopardize those on the margin as far as credit qualifying.
Freddie Mac provides mortgage money to those on the consumer level funding mortgage applications. They have a vast client network comprised of banks, insurance companies, credit unions and mortgage bankers. Each week they poll or survey lenders on rates they charge. The data is the source of the weekly rate survey.