Mortgage rates forecast

Mortgage rates hit their lowest point since Freddie Mac began tracking this data in 1971, as the 10-year Treasury yield fell below 1% after the Federal Open Market Committee's surprise short-term rate cut.

A drop in interest rates in response to the coronavirus outbreak is adding urgency to a hiring spree across the mortgage industry.

Investors' purchases of 10-year Treasurys after the Fed's 50 basis point short-term rate cut drove the yield below 1% for a period of time.

Fears stemming from the coronavirus have resulted in lower mortgage rates and more business for now, but if the situation deteriorates further, consumers could decide to put off buying a home.

Mortgage rates slipped this week, as the stock market sell-off resulted in investors moving into bonds which drove the 10-year Treasury yield down, according to Freddie Mac.

A rally in Treasuries that's driven 10-year yields toward record lows could have more room to run, a Goldman Sachs report said.

Investors snapped up U.S. Treasuries, sending the yield on 10-year securities plunging by as much as 11 basis points Monday to within 5 basis points of its all-time low.

Even with the small increase in mortgage rates this past week, the home purchase market stayed active and should remain so for the peak buying season.

For the first time since the start of the housing crisis, mortgage origination volume could top $2 trillion for three consecutive years, according to Fannie Mae.

Mortgage rates ticked up slightly, marking the first increase in four weeks, but they remain at levels which encourage borrowers to refinance, according to Freddie Mac.