flexiblefullpage - default
Currently Reading

Mortgage Rates Rise, Reacting to Refinance Rush

billboard - default

Mortgage Rates Rise, Reacting to Refinance Rush

March 13, 2020
for Sale sign in front of home
By phonlamaiphoto

As measures to slow the spread of the coronavirus intensify and investors flee the stock market, one might assume that mortgage rates would plunge further. But on Thursday, the 30-year loan mortgage rate defied expectations, rising to 3.36 percent from a previous 3.39 percent. The move comes as a deterrent to refinancers as lenders struggle to keep up with the rates bonanza: Refinancing applications climbed 79 percent from last week, which spurred the Mortgage Bankers Association to double its previous volume forecast for 2020. But as the pandemic puts pressures on the travel and tourism industries and continues to rock the market, the future path of rates is uncertain.

Mortgage rates for the popular 30-year loan rose, according to data released by Freddie Mac on Thursday, reflecting lenders’ move to tamp down an avalanche of applications from homeowners seeking to refinance.

Investor uncertainty over the novel coronavirus pandemic sent mortgage rates plunging to their lowest levels on record last week, spurring heightened activity among house hunters seeking loans and especially homeowners seeking to refinance.

Refinancing applications soared 79 percent from the previous week, according to the Mortgage Bankers Association (MBA). The flurry of interest prompted the association to double its previous forecast of volume for refinancing to $1.23 trillion for 2020.

Read More

leaderboard2 - default

Related Stories

Market Data + Trends

January's Mortgage Rate Dip Prompts Some Thawing of the Housing Market

A drop in mortgage rates from recent peaks nudged more homebuyers and sellers into the market, signaling the start of greater supply and demand


Credit for Builders Still Tight But Shows Some Easing

Credit for residential AD&C remained constrained during Q4 2023, but the good news is that tightening is less widespread than in recent quarters

New-Home Sales

Are We Headed for a Spring Homebuying Slowdown?

As mortgage rates rise to their highest levels in two months, Freddie Mac warns rates may stay higher for longer, which could affect spring buying 

boombox1 -
native1 - default
halfpage2 -

More in Category

Delaware-based Schell Brothers, our 2023 Builder of the Year, brings a refreshing approach to delivering homes and measuring success with an overriding mission of happiness

NAHB Chairman's Message: In a challenging business environment for home builders, and with higher housing costs for families, the National Association of Home Builders is working to help home builders better meet the nation's housing needs

Sure there are challenges, but overall, Pro Builder's annual Housing Forecast Survey finds home builders are optimistic about the coming year

native2 - default
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.