Mortgage rates are mixed this week after hitting all-time lows (March 12)
The decline in mortgage rates has been driven by investors shifting money out of the stock market and into the safety of US Treasurys.
WASHINGTON (AP) — US long-term mortgage rates were mixed this week after hitting all-time lows last week amid anxiety over risks to the economy from the deepening coronavirus crisis.
The average rate on the benchmark 30-year loan rose to 3.36 percent from 3.29 percent last week — which was the lowest level since mortgage buyer Freddie Mac started tracking it in 1971.
The average rate on the 15-year fixed-rate mortgage slipped to 2.77 percent from 2.79 percent last week.
The World Health Organization on Wednesday declared the viral outbreak a pandemic. Financial markets continued to shudder Thursday amid a cascade of cancellations and shutdowns across the globe due to the COVID-19 virus, and rising worries that the White House, Congress, and other authorities around the world can’t or won’t help the weakening economy any time soon.
The decline in mortgage rates has been driven by investors shifting money out of the stock market and into the safety of US Treasurys as the crisis in confidence around the global viral outbreak has worsened. Long-term mortgage rates tend to track the yields on the 10-year Treasury note, so they typically fall in tandem.
The record low mortgage rates have been a boon to potential home buyers, and they give many homeowners an opening to refinance into lower-rate loans to free up money to spend or save.
But prospective buyers may be reticent to shop for homes amid the outbreak, seeking to avoid social contact, experts note. That could slow home sales, and ultra-low mortgage rates aren’t likely to produce a significant rise in home sales this year because the supply of homes for sale remains at historic lows.
Each week, Freddie Mac surveys lenders to compile its national mortgage rate figures. The average doesn’t include extra fees, known as points, which most borrowers must pay to obtain the lowest rates.
The average rate for a five-year adjustable-rate mortgage dropped this week to 3.01 percent from 3.18 percent last week.
Subscribe to the Globe’s free real estate newsletter — our weekly digest on buying, selling, and design — at pages.email.bostonglobe.com/AddressSignUp. Follow us on Facebook, Instagram, and Twitter @globehomes.
To comment, please create a screen name in your profile
To comment, please verify your email address
Conversation
This discussion has ended. Please join elsewhere on Boston.com