Mortgage rates

After a blockbuster early spring, the COVID-19 pandemic is hitting home for Twin Cities builders.

An index of contract signings for purchases of previously owned homes slumped to a record low in April as coronavirus lockdowns thwarted prospective buyers.

Mortgage rates fell this week to the lowest level ever recorded by Freddie Mac, even as it appears the relationship to the benchmark 10-year Treasury yield has stabilized.

Home sales in Chattanooga, Tenn., fell nearly 18% last month and the inventory of houses on the market fell by more than 26% as home-bound Chattanoogans were less likely to want to either buy or sell their homes during the worst of the coronavirus shutdowns in April.

Mortgage applications increased 2.7% from one week earlier, as purchase volume is now outpacing the prior year's activity, according to the Mortgage Bankers Association.

New-home sales in the U.S. unexpectedly increased in April after swooning a month earlier, suggesting the housing market is starting to stabilize.

Potential purchasers are looking to take advantage of low rates, despite worries about job security.

Signed purchase agreements dropped 20%, but the sales that closed in April showed buyers still paying top dollar.

With mortgage rates reaching all-time lows in the opening quarter, refinance originations were up in 97% of housing markets during 1Q, according to Attom Data Solutions.

Home sales in Volusia and Flagler counties in Florida declined in April, but prices continued to rise, area Realtors' associations reported.