Daily Rate Update: Mortgage Rates Back in Line With Recent Lows

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30 Year Fixed
3.19% -0.06

15 Year Fixed
2.99% +0.01

10YR Treasury
0.65% -0.0126

FNMA 30YR 3.5
105.34 0.00

FNMA 15YR 2.5
105.48 +0.06

Mortgage Rates Back in Line With Recent Lows
May 13, 2020
Mortgage rates improved today, on average, but things can vary quite a bit depending on the lender. Several lenders are back in line with their lowest rates of the past 2 weeks. With the exception of early March 2020, these are the lowest rates of all time–at least if we’re talking about conventional, conforming, top tier scenarios.

It continues to be the case that “off-the-beaten-path” loan scenarios are nowhere near their historical lows. This group includes risk factors like cash-out refinances, lower FICO scores, investment properties, and higher loan-to-value ratios. Combine more than a few of those factors and you can be reasonably assured that you won’t even get a quote from a lender willing to do the loan, let alone offer a decent rate. This is being driven by the response to coronavirus in the housing market and beyond, where rampant forbearances create rampant uncertainty for mortgage investors. Loan scenarios with more risk factors are essentially in much lower (if any) demand until there is more clarity on the employment and forbearance situations.

Meanwhile, back in the realm of the nearly perfect loan scenario, mortgage lenders have been more and more free to operate like they used to with respect to adjusting rate offerings based on movement in the bond market. Bonds were steady to slightly stronger today as Fed Chair Powell offered a downbeat assessment of the economy (bad for stocks, good for bonds).

Loan Originator Perspective

With rates not far off from all time lows, my clients and I continue to favor locking as soon as possible. Don’t really see any benefit of taking the risk now to float. –Victor Burek, Churchill Mortgage

Ongoing Reminder on Forbearance

Coronavirus has created unprecedented challenges for people and industries. For homeowners facing a big reduction in income due to coronavirus-related hardship, a forbearance can make excellent sense. But for those who have the capacity to continue making mortgage payments, there are downsides to consider. Forbearance itself does not hurt your credit score, but it does show up on your credit report. This will affect your ability to qualify for a loan in the present and near future. It can also result in your other creditors decreasing your available credit balances. This has the unintended effect of increasing your ratio of debt to available credit which is a key component of credit scoring models. Thus, even though forbearance itself is not hurting your credit, it can indirectly lower your credit score and it will absolutely impact your mortgage creditworthiness in the short term.

30 Year Fixed Rate Mortgage

15 Year Fixed Rate Mortgage

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Today’s Rates

Best Execution

Rate

Change

Current Mortgage Rates »
What are best-execution rates?

30 Yr FRM

3.19%

-0.06

15 Yr FRM

2.99%

+0.01

FHA 30 Year Fixed

3.00%

-0.12

Jumbo 30 Year Fixed

4.36%

-0.01

5/1 Yr ARM

3.50%

-0.08

Average Mortgage Rates

Rate

Points

Change

FHFA *

15 Yr. Fixed

0.00%

0.00

+0.00

30 Yr. Fixed

0.00%

0.00

+0.00

MBA **

30 Yr. Fixed

3.43%

0.29

+0.03

15 Yr. Fixed

0.00%

0.00

-2.93

30 Yr. Jumbo

0.00%

0.00

-3.69

30 Yr. FHA

0.00%

0.00

-3.37

5/1 ARM

0.00%

0.00

-3.20

Freddie Mac **

Current Mortgage Rates »
* FHFA averages are updated monthly.
** Mortgage Bankers Association (each Wednesday) and Freddie Mac (each Thursday) averages are updated weekly.

30 Yr. Fixed

3.26%

0.70

+0.03

15 Yr. Fixed

2.73%

0.70

-0.04

1 Yr. ARM

2.68%

0.20

+0.01

5/1 Yr. ARM

3.17%

0.30

+0.03

Secondary Markets

MBS

Price

Change

30YR UMBS 3.0

104.88

-0.03

30YR UMBS 3.5

105.34

0.00

30YR GNMA 3.0

105.89

+0.19

30YR GNMA 3.5

106.92

+0.14

15YR FNMA 3.0

105.48

+0.06

15YR FNMA 2.5

104.47

-0.08

Treasuries

Yield

Change

Current MBS / Treasury Prices »
MBS and Treasury data provided by Thomson Reuters.
Mortgage News Daily and MBS Live! are exclusive re-distributors of Real Time Thomson Reuters Mortgage Information.
Secondary Marketing Managers:
If you are interested in gaining access to the most accurate real-time back-month TBA indications from Thomson Reuters and Tradeweb. Request More Information

2 YR

0.1649%

-0.0019

5 YR

0.3210%

-0.0048

10 YR

0.6541%

-0.0126

30 YR

1.3456%

-0.0283

Prices as of: 5/13/2020 4:45PM EST

About This Report
Mortgage News Daily is a trusted source of mortgage rate market data and analysis, with over 1 million readers each month. Unlike many rate surveys, our survey is conducted on a daily basis and is designed to bring you the most current and accurate rate data available. We use a proprietary formula to calculate averages based on best-execution rates from top lender’s rate sheets, also taking into account feedback from hundreds of mortgage market professionals around the country.

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This information is not an advertisement to extend consumer credit as defined by Section 226.2 of Regulation Z. This is not an offer to enter into an agreement regarding interest rates. The rates quoted do not include discount points, origination points, or loan level risk based price adjustments. Rates presented in this report are averages and are subject to change without notice.
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