|Mortgage Rates Dropped at Searing Pace, Then Bounced
March 29, 2019
Mortgage rates just had their best March in more than a decade. A combination of a surprisingly friendly Fed announcement last week and European economic troubles over the past 2 weeks sent the average 30yr fixed rate hurtling lower by .375% depending on the lender. Combine that with the first two weeks of the month, which were merely “awesome,” and many loan quotes were a full 0.5% lower in rate versus 3-4 weeks ago.
While it wasn’t enough to dethrone March’s “best in a decade” distinction, rates did come under some pressure on the last 2 days of this week. While this raises some doubts as to what next week will bring, we’re still heading into the weekend at levels that would have been a dream come true on any other Friday in more than year.
-Matt Graham, COO, MortgageNewsDaily.com
30 Year Fixed Rate Mortgage
Week in Review
Rates shown below are based on the 30 Year Fixed Rate Mortgage
Friday, March 22, 2019 : 4.15% (-0.14%)
At the end of last week, the average top-tier 30yr fixed mortgage rate quote was 4.375%. As of today, the exact same scenario would be at 4.125%–a quarter of a percentage point lower. That’s an uncommonly big move for a single week, but it’s one we’ve been tracking eagerly in recent days.
Why is it happening?
More detail: “Mortgage Rates Down 0.25% This Week”
Monday, March 25, 2019 : 4.11% (-0.04%)
Mortgage rates continued deeper into long-term lows today as the underlying bond market experiences its most impressive rally of the year. In a rally, bond prices are moving higher and rates are moving lower. This particular rally is bifurcated on several levels. On one level, different maturities of US Treasuries are moving at very different paces. For instance, the 2yr Treasury dropped by .07% today while the 30yr Treasury fell by less than 0.01%. This has to do with investors betting on central banks keeping short-term interest rates low (or cutting them to even lower levels) among other things.
More detail: “Mortgage Rates Still Moving Lower After Last Week's Stellar Drop”
Tuesday, March 26, 2019 : 4.08% (-0.03%)
Mortgage rates took the day to do just a little bit more of what they’ve been doing in fairly grand fashion for the past week: MOVE LOWER! When the good times started in earnest (after last week’s Fed Announcement), rates were already in line with their lowest levels in more than a year. As of today, they’re another quarter or a percentage point (0.25%) lower. In other words, if you’d been looking at a quote of 4.375% last Tuesday, you’d likely be seeing 4.125% today.
More detail: “For Mortgage Rates, "High 3's" In Sight Once Again”
Wednesday, March 27, 2019 : 4.03% (-0.05%)
Mortgage rates moved lower for the 6th straight day, bringing them very close to the best levels since late 2017. Perhaps more impressive (or telling) is the fact that rates haven’t even had a single “bad day” since March 1st. It’s impressive because it’s been an incredibly long winning streak (we usually see a day here or there with rates nudging a bit higher). It’s telling because it’s exactly what you’d expect to find as the backdrop for what has been the single best month for mortgage rates in more than a decade.
More detail: “Mortgage Rates Are on a Tear”
Thursday, March 28, 2019 : 4.07% (+0.04%)
Mortgage rates moved higher by a measurable amount today–the first time they’ve done such a thing in nearly a month! Even after the modest increase, March is still on track to be the best month for mortgage rates in more than a decade.
More detail: “Mortgage Rates Edge Higher From Long-Term Lows”
Friday, March 29, 2019 : 4.11% (+0.04%)
Mortgage rates were higher again today, making this the first confirmed bounce since beginning their stellar run last week. To be clear, rates have been in a broader stellar run since November 2018, but had definitely settled into a sideways pattern in the first part of 2019. Last week’s big move served as the great escape from that pattern.
More detail: “Are Rates Bouncing After Best Month in a Decade?”