Freddie Mac chief economist expects rates to sink lower in the second half of 2020
Mortgage rates remained flat after drifting down for two weeks in a row as the Federal Reserve took extra measures to stabilize the market struggling under the weight of coronavirus.
The 30-year fixed-rate mortgage held steady at 3.33% for the week ending April 9, according to the Freddie Mac Primary Mortgage Market Survey. A year ago, the average 30-year mortgage was 4.12%.
The 15-year fixed-rate mortgage fell five basis points from 2.82% the week prior to 2.77% last week. A year ago, the 15-year FRM averaged 3.60%.
“While mortgage rates remained flat over the last week, there is room for rates to move down,” said Sam Khater, chief economist at Freddie Mac. “This year, the 10-year Treasury market has declined by over a full percentage point, yet mortgage rates have only declined by one-third of a point."
The 5-year Treasury-indexed hybrid adjustable-rate mortgage also stayed unchanged at 3.40%, lower compared to last year's 3.80% average.
"As financial markets continue to heal, we expect mortgage rates will drift lower in the second half of 2020," Khater said.
