Mortgage rates forecast

As the bond market drives yields down because of the economic turmoil, mortgage rates moved in concert, dropping below 4% for the first time since January 2018, according to Freddie Mac.

The decline in average mortgage rates since the start of the year is driving higher purchase demand, especially at the higher end of the market, according to Freddie Mac.

Even if the U.S. economy slows during the rest of 2019, the outlook for the housing and mortgage market remains strong, said economists at Fannie Mae and Freddie Mac.

Market reaction to the trade dispute with China led to a modest decline in mortgage rates this week, but that shouldn't affect home sales in the coming months, Freddie Mac said.

Mortgage rates continued to decline during May, as fears over a possible trade war with China drove investors into safer instruments, according to Freddie Mac.

Mortgage rates dipped after four weeks of increases, finally mirroring the drop in the benchmark 10-year Treasury yield, according to Freddie Mac.

Mortgage rates posted a fourth consecutive week of increases, but Freddie Mac remains bullish in its outlook for this spring's home purchase season.

Mortgage rates rose for the third consecutive week, but home purchases are up as well, to their highest level in nine years, according to Freddie Mac.

Mortgage rates rose slightly for the second consecutive week, but should remain low for the foreseeable future, which will aid the purchase market, according to Freddie Mac.

Mortgage rates held steady after several weeks of declines, during which there was the largest weekly drop in more than 10 years, according to Freddie Mac.

Average mortgage rates fell by their largest amount in more than 10 years last week as bond yields fell in reaction to the March 20 Federal Open Market Committee meeting.

If mortgage rates fall below 4%, it could more than double the dollar volume of agency mortgages exposed to refinancing incentive, analysts at Keefe, Bruyette & Woods found.

The Federal Reserve decision to shift into Treasuries could pull rates down and increase the prepayment speeds on mortgage-backed securities.

The 30-year mortgage rate dipped lower than it was 12 months ago for the third week running, according to Freddie Mac's latest report.

The Federal Reserve will roll its maturing holdings of mortgage-backed securities into Treasuries starting after September, capping it at $20 billion per month.

Fannie Mae estimates the average 30-year fixed-rate mortgage to hold at 4.4% through 2019 and 2020 due to the overall slowdown in the economy, according to the March housing forecast.

Mortgage rates declined across the board this week, which should make home buying more attractive although there are continuing concerns about inventory, according to Freddie Mac.

The increase in average mortgage rates this week should not affect the spring home purchase market because other factors remain strong, according to Freddie Mac.

Freddie Mac again increased its origination forecast for the next two years, as the rate drops of the past few months are expected to boost refinance volume.

With few headlines to drive up or down movement in the bond markets, mortgage rates held steady after declining for three consecutive weeks, according to Freddie Mac.