Mortgage rates forecast

Apart from saving more money, millennials prefer to spend their savings on a home down payment, Zonda economist Ali Wolf said.

After a booming 2020, more mortgage lenders than ever before expect diminishing margins in the coming months as climbing interest rates set up heightened competition.

Consumers may want to strike while the iron’s hot and apply for loans now, before rates get much higher.

And there are some brawls on the field affecting the direction of business for the rest of this year.

The gap between those that considered it a good or bad time to buy narrowed 10 percentage points in February, the tightest spread since last April, Fannie Mae found.

With the latest growth, interest rates spiked 37 basis points since the calendar flipped to 2021 alongside rising Treasury bond yields.

After several weeks of resistance, mortgage rates are now moving in lockstep with the recent increases in the 10-year Treasury yield.

With the most recent stimulus aiding economic recovery, mortgage lending’s feeding frenzy could be coming to an end.

The cost associated with borrowing money to finance homes now appears more likely to remain stable rather than continuing to decline, which should eventually slow refinance activity.

With low mortgage rates billowing demand as homebuying season approaches, consumer confidence for selling jumped in January, according to Fannie Mae.

Whether or not the cost of home loans go up may hinge on the labor market recovery, and right now bond yields suggest they are heading in one particular direction long term.

Investors were also reacting to the inauguration of Joe Biden and uncertainty over additional fiscal relief, Freddie Mac’s Chief Economist Sam Khater said.

After last week’s spike, mortgage rates dropped back to near historic lows, as broader worries about the pandemic and the economy came back to the fore for investors.

Despite mortgage rates expected to rise modestly in 2021, a bolstered Biden administration stimulus package and COVID-19 vaccination efforts bring promise for economic recovery.

Mortgage rates, whose movements until now had not reflected gains in the benchmark 10-year Treasury yield, rose 14 basis points this week, according to Freddie Mac.

It’s more of the same when it comes to mortgage rates entering 2021, as once again they have dropped to lowest point in the 50-year history of Freddie Mac’s Primary Mortgage Market Survey.

Mortgage rates rose a basis point this week, ending the year near record lows, according to Freddie Mac.

Mortgage rates yet again have dropped to a record low, even as the yield on the benchmark 10-year Treasury flirts with breaking back above the 1% mark, according to Freddie Mac.

Fiscal policy concerns, rather than economic data, are driving rate changes right now, economist says

With coronavirus inoculations underway and government stimulus likely to come, the outlook for next year’s housing market and lending environment grew more optimistic in December.