The benchmark 30-year fixed-rate mortgage fell this week to 3.71 percent from 3.75 percent, according to Bankrate’s weekly survey of large lenders.
Mortgage rates have declined with the 10-year Treasury note, which closely tracks mortgage rates. Stocks and government bond yields are falling in the wake of worries about the worldwide coronavirus outbreak.
A year ago, the 30-year rate was 4.54 percent. Four weeks ago, the rate was 3.70 percent. The 30-year fixed-rate average for this week is 0.91 percentage points below the 52-week high of 4.62 percent, and is 0.01 percentage points greater than the 52-week low of 3.70 percent.
The 30-year fixed mortgages in this week’s survey had an average total of 0.30 discount and origination points.
Over the past 52 weeks, the 30-year fixed has averaged 3.99 percent. This week’s rate is 0.28 percentage points lower than the 52-week average.
- The 15-year fixed-rate mortgage fell to 3.00 percent from 3.08 percent.
- The 5/1 adjustable-rate mortgage fell to 3.30 percent from 3.42 percent.
- The 30-year fixed-rate jumbo mortgage fell to 3.69 percent from 3.70 percent.
At the current 30-year fixed rate, you’ll pay $460.85 each month for every $100,000 you borrow, down from $463.12 last week.
At the current 15-year fixed rate, you’ll pay $690.58 each month for every $100,000 you borrow, down from $694.44 last week.
At the current 5/1 ARM rate, you’ll pay $437.96 each month for every $100,000 you borrow, down from $444.59 last week.
Results of Bankrate.com’s weekly national survey of large lenders conducted February 26, 2020 and the effect on monthly payments for a $165,000 loan:
| Breakdown | 30-year fixed | 15-year fixed | 5-year ARM |
|---|---|---|---|
| This week’s rate: | 3.71% | 3.00% | 3.30% |
| Change from last week: | -0.04 | -0.08 | -0.12 |
| Monthly payment: | $760.40 | $1,139.46 | $722.63 |
| Change from last week: | -$3.74 | -$6.36 | -$10.95 |
Where rates are headed
In the week ahead (Feb. 27-March 4)), 10 percent of the experts polled by Bankrate predict rates will rise, 60 percent say rates will fall, and 30 percent predict rates will remain relatively unchanged (plus or minus 2 basis points).
“The entire conversation is now about coronavirus and what the headlines are going to be. Right now we are basically at a triple cycle low in the 10-year yield which, on Tuesday, hit an all-time low intraday,” said Logan Mohtashami, senior loan officer, AMC Lending Group in Irvine, California. “None of the recent better economic data matters, it’s all about the coronavirus headlines as future data will come in soft for some sectors.”
There is fear in the market, says Mitch Ohlbaum, president, Macoy Capital Partners, Los Angeles. “The flood into treasuries is not anything new, it is the safest and most liquid asset in the world today and where everyone wants to park money in times of distress or the unknown. This is, of course, the simple law of supply and demand and drives rates down. The selloff in equity markets moves people to treasuries, the fear of global recession moves people to treasuries, the fear of COVID-19 moves people to Treasuries.”
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