Taking a pause last week, mortgage rates picked up where they left off and dropped another 2 basis points to come in at 3.62% The decline represents a significant trend as it is the seventh decline in the eight weeks of reporting for 2016.
Treasury Bonds and housing
Experts have pointed to two critical metrics for the decline. 10 year treasury bonds slid for the second week in a row and the National Association of Realtors reported a sharp increase in existing home sales.
The reality of 2 percent is a yawn and nothing extraordinary. However, for consumers any measure of decline brings good news as it represents being able to obtain an affordable mortgage or being able to reduce the payment on their existing mortgage.
Due to the continued mortgage rate slide lenders are scrambling to make sure their operations can handle the increase in applications. Consumers on the other hand are making sure their credit and property are in a position to qualify for a mortgage loan so their application is not stalled once they engage their lender.
Weekly rate recap:
30 year fixed rate – 3.620%
15 year fixed rate – 2.930%
5/1 ARM – 2.79%