Mortgage rates just hit another record high
A sign advertising mortgage rates for buying or refinancing at a Bank of America in New York.
Scott Mlyn | CNBC
The average rate on the popular 30-year fixed mortgage has just fallen to 3.09%, a record high, according to Mortgage News Daily.
A lower reading than expected for the month of April coronavirus– Affected retail sales released on Friday helped lower as investors turned to the relative safety of the bond market, pushing yields lower. Mortgage rates loosely track the yield of the 10-year Treasury.
Mortgage rates aren’t an exact science, so there are lenders now even lower, offering 3% and even 2.75% -2.875% for perfect scenarios. There are also lenders who stay at higher rates.
“Not all lenders are there, however, and all scenarios where the buyer has a less than perfect profile may not even be close to all-time lows,” said Matthew Graham, COO of Mortgage News. Daily. “Lenders are raising fees for riskier borrowers due to the economic uncertainties caused by the coronavirus and the growing number of borrowers who are struggling to make their monthly payments.”
There are now nearly 4.7 million borrowers in mortgage forbearance programs, mostly in the form of government guaranteed loans, according to Black Knight, a mortgage data and analysis company. These borrowers can delay monthly payments for at least three months and up to a year, but payments must be made at a later date.
Low mortgage rates are contributing to a faster than expected recovery in homebuyer demand. As states restart, buyers return to open houses. Others are stepping up their virtual purchases. Real estate agents as well as home builders have reported increased interest from buyers in just the past two to three weeks.