Refinancing your mortgage will cost more thanks to a new fee from Fannie Mae and Freddie Mac


If you’re in the process of refinancing your mortgage, you may end up paying more than you expected.

Fannie Mae
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and Freddie Mac
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said Wednesday that they will start charging a 0.5% “adverse market fee” on all refinances, including both cash-out and non-cash-out refis. The new fee goes into effect Sept. 1.

“As a result of risk management and loss forecasting precipitated by COVID-19 related economic and market uncertainty, we are introducing a new Market Condition Credit Fee in Price,” Freddie Mac said in a notice to lenders.

Fannie Mae noted that its forecasts regarding the impact of COVID-19 could change substantially, making it difficult to predict the pandemic’s impact on the government-sponsored enterprise.

The Federal Housing Finance Agency, which regulates Fannie and Freddie, said the two government-sponsored enterprises “requested, and were granted, permission from FHFA to place an adverse market fee on mortgage refinance acquisitions.”

Fannie and Freddie are not lenders themselves — instead, they purchase loans from lenders, package them into mortgage-backed securities and then sell those securities to investors. Fannie and Freddie also provide guarantees to investors and advance payments even when borrowers are delinquent on the loans.

Also see:Mortgage rates keep falling — so will they finally drop to 0%?

The new fee could add up to a significant sum in many cases. The median home nationwide was worth $291,300 as of the second quarter, according to the National Association of Realtors. Therefore, if you applied this fee to a mortgage on a home worth that much, assuming a 20% down payment, the fee would cost over $1,100. The Mortgage Bankers Association, a trade group that represents lenders, said the fee would amount to around $1,400 per loan on average.

It’s not the first time Fannie and Freddie have imposed a fee like this. In 2007, Fannie Mae imposed a 0.25% surcharge on all mortgages it bought from lenders in response to the burgeoning global financial crisis.


‘If you had a refi pending and didn’t lock or were just thinking about a refi and hadn’t acted yet, then the consumer pays thousands of dollars as long as this stays in effect.’


— Bob Broeksmit, president and CEO of the Mortgage Bankers Association

The new fee quickly faced criticism. A group of 20 trade organizations and public interest groups called on the FHFA to reverse the fee. The group included the American Bankers Association, the Credit Union National Association, the Mortgage Bankers Association, the National Association of Realtors, the Center for Responsible Lending and the National Fair Housing Alliance.

The group argued that the new fee conflicts with the Trump Administration’s actions urging federal agencies to support homeowners. “At a time when the Federal Reserve is purchasing $40 billion in agency mortgage-backed securities per month to help reduce the cost of buying or refinancing a home and stimulate the broader economy, this action by the GSEs raises those costs, contradicting and undermining Fed policy,” the group said in the statement.

A senior White House official told The Wall Street Journal that the Trump administration “has serious concerns with this action” and would review the fee.

Others pointed out inconsistencies in the timing and structure of the fee. NerdWallet home and mortgage expert Holden Lewis said it was “odd that they’re not charging the fee on purchase mortgages, too” if the fee was being implemented because of economic uncertainty.

“It doesn’t make sense,” Bob Broeksmit, president and CEO of the Mortgage Bankers Association, told MarketWatch. “The implementation timeline is intentionally punitive and absurd.”

As of June, it took 48 days on average to close a refinance loan, according to mortgage technology firm Ellie Mae. Therefore, lenders will have many loans already in the pipeline where borrowers have already locked in a rate and are just waiting to finalize the loan.

If lenders cannot complete those loans by Sept. 1, they will be forced to pay the fee. However, if a borrower had not yet locked in a rate with their lender, the cost of the new fee would be passed on to them in most cases. (Fannie Mae noted that whether the fee is passed on to the consumer is up to the lender.)

“If you had a refi pending and didn’t lock or were just thinking about a refi and hadn’t acted yet, then the consumer pays thousands of dollars as long as this stays in effect,” Broeksmit said.

Broeksmit also called into question the necessity of the fee. Millions of borrowers nationwide have requested forbearance on their mortgages since the pandemic began, but that number has been falling in recent weeks.

And roughly a quarter of the people who entered a forbearance agreement, which means they could skip their monthly payments, did make their July payment, Broeksmit said. Furthermore, borrowers applying for a refinance need to be current on their mortgage in the first place, making those loans arguably less risky. Many lenders have also implemented stricter requirements for borrowers to qualify for a mortgage.

The new fee threatens to make refinancing a less lucrative proposition for homeowners who have yet to lock in the market’s rock-bottom rates. Refinance volume has been elevated in recent months because of the low mortgage rate environment. Since March, mortgage rates have dropped to record lows on eight separate occasions.

But borrowers applying now won’t be as lucky. “By this artificial increase, it requires a larger drop in rates for it to be worthwhile for borrowers to refinance,” Broeksmit said.



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Mortgage rates keep falling — will they finally drop to 0%?


Mortgage rates have dropped to record lows on eight separate occasions in 2020 so far, as the coronavirus pandemic has roiled the global economy.

But could they eventually drop to 0%? Well, if past precedent is any indication, there’s indeed a chance.

Freddie Mac
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deputy chief economist Len Kiefer posted to Twitter
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a chart showing the movements in the average rate of the 30-year fixed-rate mortgage following the Great Recession. As he pointed out, interest rates on home loans dropped in four of the five years following the 2008 financial crisis, falling roughly three percentage points.

This week, mortgage rates moved up a bit. The 30-year fixed-rate mortgage averaged 2.96% for the week ending Aug. 13, rising eight basis points from the week prior, Freddie Mac reported Thursday. The 15-year fixed-rate mortgage averaged 2.46%, while the 5-year Treasury-indexed hybrid adjustable-rate mortgage stood at 2.9%. The week prior mortgage rates had fallen to a record low for the eighth time this year.

So were we to see a repeat of what happened after the Great Recession, then rates indeed would drop to 0% — or even into negative territory. Predicting whether that will happen isn’t so simple.

“Interest rates are super hard to forecast,” Kiefer told MarketWatch. “Economists, myself included, have not had a great track record of predicting where rates would go. For many years, folks were saying rates were headed higher, and they ended up continuing to head lower.”

A 0% mortgage isn’t a fantasy — in fact, it’s the reality across the pond. In Denmark, Jyske Bank
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-1.93%

began offering a 10-year fixed-rate mortgage at negative 0.5% last year, and Finland-based Nordea Bank announced around the same time that it was offering a 20-year fixed-rate mortgage in Denmark that charges no interest.


‘For many years, folks, were saying rates were headed higher, and they ended up continuing to head lower.’


— Len Kiefer, deputy chief economist at Freddie Mac

But economists say there are many reasons to believe that mortgage rates won’t drop to 0% or lower any time soon in the U.S. For instance, Freddie Mac’s most recent forecast estimated that the 30-year mortgage would average 3.2% in 2021, not too far from where it stands now.

That’s in large part because the Federal Reserve wouldn’t likely let it happen. The Fed doesn’t directly control mortgage rates. Instead, mortgage rates roughly followed the direction of long-term bond yields, particularly the 10-year Treasury note
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.

However, expectations regarding the Fed’s interest-rate policy are cooked into the yields for those bonds and mortgage rates. When the pandemic became a major concern, the Federal Reserve did move to cut the short-term federal funds rate to zero — and sure enough, since then both the 10-year Treasury yield and the 30-year mortgage rate have dropped to record lows.

In order for 0% mortgages to become a reality, “We’d probably have to see negative Fed funds rates,” said Danielle Hale, chief economist at Realtor.com.

“The central bank rates in Denmark had been negative for five years or so before mortgage rates got to zero,” Hale added. “The Fed has been clear that it’s not their preferred course of action.”

A lot would need to happen for the Fed to take rates negative, including perhaps a major demographic shift.

“The U.S. population is a lot younger than Europe or Japan,” Kiefer said. “Perhaps in 10 years, depending on immigration and other things, we may look more like them. If that is one of the driving factors of inflation — we don’t know that for sure, but that’s a theory — then that could be what we would perhaps look at.”


‘The central bank rates in Denmark had been negative for five years or so before mortgage rates got to zero.’


— Danielle Hale, chief economist at Realtor.com

In other words, the aging populations in Western Europe and Japan could explain the slower economic growth those regions have seen. And it would take a serious, prolonged downturn in GDP or labor market growth in the U.S. for the Fed to feel comfortable moving rates into the negative territory.

Yet, even if that happens, rates could still stay above 0% — and that’s because of the role investors in mortgage-backed securities play. “Mortgage rates are determined by investor demand for mortgage bonds,” said Matthew Speakman, an economist at Zillow
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+2.83%
.

“A precipitous drop in rates would likely prompt a surge in refinancing demand, and loans that only generate a few payments before being refinanced aren’t profitable for investors,” Speakman added. “This dynamic would weaken investor demand and result in higher rates.”

Plus, mortgages carry some risk, since homeowners could miss payments and go into default. That risk comes with a premium that translates into a higher interest rate compared with the yield on the 10-year Treasury and other investments, Speakman said.

However unlikely it is that mortgage rates fall to 0% on average, that isn’t to say one or two lenders might not flirt with the idea. United Wholesale Mortgage, for instance, has begun advertising a 30-year fixed-rate mortgage at only 1.99% — though the low interest rate comes with steep fees.

“When we survey lenders we see a variety of interest rates,” Kiefer said. “It may be very beneficial for them to shop around because they may get very different quotes, depending on who they talk to.”



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Quicken Loans is going public: 5 things to know about the mortgage lender


Rocket Companies
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the parent company of mortgage lending giant Quicken Loans, has set the terms of its initial public offering.

The company announced Wednesday night that it plans to sell 100 million shares at $18 each — both below initial estimates. In July, the company said it planned to offer 150 million shares priced at $20 to $22 each. It plans to begin trading on the on the New York Stock Exchange under the ticker “RKT” starting Thursday.

Twenty banks are set to underwrite the IPO, led by Goldman Sachs
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Proceeds from the IPO will be used to purchase businesses and Class D stock from Rocket Cos.’ existing holding company, Rock Holdings Inc., which is owned by the company’s founder and chairman Dan Gilbert.

Rocket’s IPO comes as the broader IPO market has kicked into high gear after a long dry spell as a result of the coronavirus pandemic. Recent offerings include Warner Music Group Corp.
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which returned to public markets in June after nine years of being private, and online insurer Lemonade
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which debuted last week.

Rocket is also going public as the mortgage industry has seen millions of homeowners request forbearance on their monthly loan payments amid record levels of unemployment.

The company’s leadership team mainly comprises executives from Quicken Loans. Jay Farner, who has served as CEO of Quicken Loans since 2017, will be the company’s CEO. Farner has been with Quicken for over two decades, and previously served as the lender’s president and chief marketing officer. Julie Booth, the company’s chief financial officer and treasurer, has been in this role at Quicken Loans since 2005.

The lender was originally founded in 1985 as Rock Financial. In 1998, Gilbert took Rock Financial public, but eight years later it was purchased by Intuit. At that time, the company’s name was switched to Quicken Loans. Then in 2002, Gilbert and other investors purchased Quicken Loans back from Intuit
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.

Don’t miss:The mortgage industry is facing a crisis because of the coronavirus — and borrowers could fall through the cracks

Throughout its history, Quicken has been at the forefront of the digitization of the mortgage industry. In 2016, Quicken Loans debuted the Rocket Mortgage brand with the claim that the company’s digital mortgage process could connect consumers with a mortgage in as little as eight minutes.

Rocket Mortgage has increased its market share to 9.2% in the first quarter of 2020 from 1.3% in 2009. Rocket Mortgage’s primarily digital mortgage lending process has proven popular with millennials in particular, who represent the largest generation of home buyers in the country. Among the consumers who applied for a home loan using the company’s online platform or app, 75% were first-time homeowners or millennials, the company said.

In 2018, Quicken Loans became the largest mortgage lender by volume in the U.S. by supplanting Wells Fargo
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,
in a demonstration of the growing dominance of non-bank lenders in the mortgage space.

Rocket Cos. also owns a range of companies across the financial services and real-estate ecosystems, include real-estate listing websites Rocket Homes, title insurance company Amrock and financial product search engine LowerMyBills.

Those other businesses could comprise a broader part of the company’s strategy moving forward. Earlier this year, the company’s CEO, Jay Farner, described to MarketWatch how Quicken Loans was aiming to develop new products and services designed to give homeowners a more comprehensive view into their assets.

“Your largest investment is your home, so why not more visibility into how that asset’s forming and more suggestions to improve that?” Farner said. “You’re going to see people bring more value to consumers that way. That’s what we’re focused on.”

According to its IPO prospectus, the company has seen its net revenue double over the past year. The company brought in nearly $1.4 billion in the first three months of 2020, as compared with $632 million during the same period last year. The company’s net income in the first quarter of 2020 was $97.7 million, after a net loss of $299 million a year ago.

Here are five things to know about Rocket ahead of its IPO:

The company’s profits depend largely on the direction of interest rates

Most of Rocket’s mortgage originations are refinances. Of the $39 billion in total originations in 2019, only 27% was for consumers buying a home. Consequently, refinancing represents a bigger part of Rocket’s business than the broader mortgage industry.

The drop in interest rates to historic lows in recent months has helped boost the company’s profits this year, as Rocket processed record numbers of loans. “If interest rates rise and the market shifts to purchase originations, our market share could be adversely affected if we are unable to increase our share of purchase originations,” the company said in the prospectus. A sustained low-rate environment could also prompt a decline in refinancing demand.

Shifting toward purchase loans isn’t foolproof either. As Rocket warns, higher interest rates make buying a home more expensive, which could also cause a drop in demand for those loans.

Fluctuations in rates also have an impact on the company’s servicing business and the value of its mortgage servicing rights. “Historically, the value of MSRs has increased when interest rates rise as higher interest rates lead to decreased prepayment rates, and has decreased when interest rates decline as lower interest rates lead to increased prepayment rates,” the company said. “As a result, decreases in interest rates could have a detrimental effect on our business.”

Read more:Mortgage rates keep falling to record lows — so is now a good time to refinance?

People who purchase shares in the public offering won’t have much say in the company

Rocket’s current parent, Rock Holdings Inc., and its owner Gilbert, will retain aggregate voting power equal to 79% in the public company thanks to its ownership of Class D shares, which are afforded 10 votes per share.

“Accordingly, RHI will control our business policies and affairs and can control any action requiring the general approval of our stockholders,” the company said. That includes the election of board members, the adoption of bylaws and the approval of any merger or sale of substantially all of our assets. Rock Holdings will maintain this control as long as it owns at least 10% of Rocket’s issued and outstanding common stock.

The “Quicken Loans” name has a complicated backstory

In recent years, the company has embraced the “Rocket Mortgage” brand in favor of Quicken Loans. As the company’s filing with the Securities and Exchange Commission notes, it does not own the rights to the Quicken Loans trademark. It licenses the name and trademark from Intuit.

Intuit owned a separate entity, called QuickenMortgage, when it purchased Rock Financial in 1999, which it combined with Rock Financial’s mortgage business to form Quicken Loans. Even after Gilbert repurchased the company, Intuit remained the owner of the brand.

Rocket has entered into an agreement to assume full ownership of the brand in 2022 “in exchange for certain agreements.” Until that deal closes, Intuit reserves the right to terminate the licensing agreement if Quicken Loans breaches its obligations or if there are “certain instances where wrongdoing or alleged wrongdoing by Quicken Loans or any controlling person could have a material adverse effect on Intuit,” the company said.

Also see: Black homeownership has declined since 2012 — here’s where Black households are most likely to be homeowners

Investors shouldn’t expect to receive a dividend

Rocket currently plans to retain all future earnings and doesn’t anticipate paying cash dividends “for the foreseeable future” following the IPO. That means shareholders will have to rely on stock gains for returns.

Any future plans to offer a dividend could be further complicated by the company’s structure. “As a holding company, our ability to pay dividends depends on our receipt of cash dividends from our subsidiaries, which may further restrict our ability to pay dividends as a result of the laws of their respective jurisdictions of organization,” the company noted.

The company’s fortunes could be hampered by the privatization of Fannie Mae and Freddie Mac

The vast majority of the mortgages Rocket originates are sold into the secondary market, and its loans are securitized by Fannie Mae
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,
Freddie Mac
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and Ginnie Mae.

The Trump administration has prioritized the reform and recapitalization of Fannie Mae and Freddie Mac, which have remained in conservatorship since the 2008 financial crisis. Lawmakers in Congress have also advanced their own proposals regarding Fannie and Freddie’s future.

Whatever happens with Fannie and Freddie could affect Rocket’s business. It could lead to higher fees charged by Fannie and Freddie or lower prices for the sale of the company’s loans, according to the regulatory filing.

The Renaissance IPO ETF
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has gained 37% in the year-to-date, while the S&P
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only risen 0.3%.

This story was updated on July 28, 2020.



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Mortgage rates keep falling to record lows — so is now a good time to refinance?


The coronavirus pandemic has led to a dramatic decline in mortgage rates. But that doesn’t mean now is a good time to refinance for everyone.

Last week, Freddie Mac
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reported that mortgage rates hit a new record low for the fourth time this year, with the average rate on a 30-year fixed-rate mortgage dropping to 3.13%.

When rates hit their first record low of the year back in March, it triggered a deluge of refinancing activity just as many lenders were transitioning to remote work environments because of the spread of COVID-19. That led to a massive backlog at some lenders, with some borrowers waiting weeks to close their refinances.

Now, the market has settled down, and lenders have adapted to the coronavirus world. And the good news for borrowers is that most markets are served by mobile notary services, said Pat Stone, co-founder and chairman of title insurance company Williston Financial Group, and other states allow for entirely virtual mortgage processes. That means in most parts of the country getting a new home loan won’t mean risking your health, as infection rates remain stubbornly high in many areas.

Read more: Home prices continued to rise even as the coronavirus pandemic swept across America, FHFA says

But will refinancing your mortgage risk your financial health? Here’s what homeowners need to consider before closing on a new loan.

Figure out when you’ll break even

As a general rule of thumb, experts say that a refinance will be worthwhile if it will net a homeowner an interest rate between 50 and 75 basis points lower than their current mortgage’s rate. That’s because the reduced interest will compensate for the closing costs associated with the refinance.

But those savings don’t come immediately — it will take a few year before the savings via monthly payments accrue to outweigh the costs.

“If you’re in your forever home, it might make sense to refinance with a half-point rate decrease,” said Holden Lewis, home and mortgage expert at personal-finance website NerdWallet. “But if you plan to sell the home within five years or so, it’s most likely not worth it because you’ll pay more in fees than you would save during that time.”


‘If you’re in your forever home, it might make sense to refinance with a half-point rate decrease.’


— Holden Lewis, home and mortgage expert at personal-finance website NerdWallet

Pay attention to the loan’s term

Homeowners shouldn’t necessarily default to a 30-year loan, despite their popularity.

“Because rates have fallen so much you could probably get into a 15-year loan and maybe maintain or even still lower your monthly payment,” said Tendayi Kapfidze, chief economist at LendingTree
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-1.61%

. “You’re going to pay off the loan sooner and you’re going to pay less interest.”

Choosing a shorter term has its trade-offs though, mortgage industry experts warn, if locking into such a loan means making larger monthly payments. The standard 30-year mortgage offers flexibility.

“You have the flexibility to pay extra every month when you can afford to, and you can cut back to the minimum required payment during insecure times,” Lewis said.

Don’t be afraid of closing costs

When doing your break-even analysis, don’t shy away from paying closing costs. While paying those costs upfront may seem like it’s making the refinance more expensive, in reality it could be saving you money.

“It’s always attractive to say ‘no cost,’ but you might end up paying for it over the life of the loan,” said Brian Koss, executive vice president of Mortgage Network, a Massachusetts-based lender. That’s because those costs don’t go away. Rather, they may be rolled into the loan’s balance, or lead to a higher interest rate.

Along those lines, you can prepay your interest by paying for mortgage points. The upfront cost, again, will be higher if you do this, but will save you thousands in interest.

The tumultuous economy has made it harder to qualify

As millions of Americans lost their jobs or were furloughed because of coronavirus-related business closures, lenders went into damage control mode. Many lenders raised the standards borrowers must meet to qualify for a new loan. This included higher minimum credit scores and lower debt-to-income ratios, among other factors.

The prospect of an imminent economic recovery is far from certain. While the job market has improved in recent weeks, some states that have reopened their economies have seen a surge in coronavirus cases.


‘It’s always attractive to say ‘no cost,’ but you might end up paying for it over the life of the loan.’


— Brian Koss, executive vice president of Mortgage Network

“The V-shaped bounce back was kind of a pipe dream in the first place, and it’s looking less and less likely, notwithstanding the recent strong data that we’ve seen,” Kapfidze said. “I’ve been anticipating that lenders are going to get more and more conservative and restrictive with their lending standards.”

If you were furloughed, laid off or if you’re self-employed, it could be harder to get approval for a refinance. In these cases, borrowers may have luck turning to their current lender for a refinance.

“Your current lender is heavily invested in you,” Kapfidze said. It will cost them money to lose business, so they may be willing to offer homeowners deals on refinancing.

If you received forbearance, you may hit roadblocks

The CARES Act let millions of Americans take advantage of the ability to claim forbearance from their mortgage payments.

But being in a forbearance plan could disqualify a homeowner from certain types of loans. If you skipped payments while in forbearance, you must make at least three current payments after ending the plan to be eligible for a refinance into a loan backed by Fannie Mae
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or Freddie Mac.

Also see:Americans are eyeing homes in the suburbs as pent-up demand hits housing market

But if you were one of the many Americans who requested forbearance but continued making payments, you will be eligible to refinance right away so long as you stay current on your loan.

Finally, don’t try to time the market

Yes, mortgage rates have fallen to a new record low multiple times this year. But there’s no guarantee that trend will continue.

“People are waiting for a rate a half a percent below where we are now relatively — that’s getting greedy,” Koss said.

There’s a significant upside risk to mortgage rates right now. Their recent drops have largely come after the stock and bond markets have responded to negative news about the coronavirus pandemic.

The potential for a second wave remains, and some states are seeing another surge of infections as part of the first wave of the outbreak. But health experts have suggested that a vaccine could come very soon, and researchers have several promising candidates for coronavirus treatments.

If a vaccine or treatment for COVID-19 is announced, that would likely cause markets to rally — and mortgage rates to rise in tandem.

“Don’t try to time the bottom, just pick the rate that makes the most sense,” Koss said.



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Mortgage rates hit another all-time low as home buyers rush to secure cheap financing


Mortgage rates have gotten even more affordable — a boon to the many Americans once again considering buying a home as coronavirus-related stay-at-home orders are lifted across the country.

The 30-year fixed-rate mortgage dropped to an average of 3.15% during the week ending May 28, a decrease of nine basis points from the previous week, Freddie Mac
US:FMCC
reported Thursday. This represents the lowest level since Freddie Mac began tracking this data starting in 1971. A year ago, the 30-year fixed-rate mortgage averaged 3.99%.

The previous record low was set at the end of April, when the average rate on a 30-year home loan dropped to 3.23%. This is now the third time in 2020 when the mortgage market has recorded a new historical low for interest rates.

The 15-year fixed-rate mortgage dropped eight basis points to an average of 2.62%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.13%, down four basis points from a week ago.

Rates have remained low by historical standards for many weeks now — and that’s a sign that the relationship between mortgage rates and bond yields has improved. Historically, mortgage rates have roughly tracked the direction of the 10-year Treasury yield
BX:TMUBMUSD10Y
. But that relationship was disrupted thanks to volatility in the mortgage market due to the wave of forbearance requests prompted by the coronavirus-fueled economic downturn.

Volatility in financial markets also made bond yields something of a moving target for mortgage firms, which made it more difficult for them to peg where rates should be.

“Financial volatility has notably decreased in recent weeks, resulting in steady improvements in the stock market, and more predictable — albeit modest — movements in bond markets,” Zillow
US:ZG
economist Matthew Speakman said. “The eased strains in financial markets have also resulted in mortgage rates remaining fairly flat in the last couple of weeks and are generally calmer following the turmoil experienced in the early days of the coronavirus outbreak.”

The strong performance of the stock market, as evidenced by recent gains in the Dow Jones Industrial Average
US:DJIA
and the S&P 500
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, could mean that low rates are here to stay for the foreseeable future.

That’s music to the ears of many Americans looking to purchase a home in the coming months. The number of mortgage applications for loans used to buy a home has risen for six straight weeks, according to the Mortgage Bankers Association. The volume of purchase loans is now up 54% from early April, when loan application volume dropped in the face of the coronavirus pandemic.

Refinance volume has tapered off on a weekly basis, but remains 176% above levels seen a year ago, the mortgage industry trade group noted.

As buyers line up financing, home sales should see a rebound from the declines seen in March and April, making for a delayed spring home-buying season.

Not all buyers though will get the chance to lock in a rock-bottom rate, though. The Freddie Mac survey tracks conventional loans — meaning those that can be purchased by Freddie Mac and Fannie Mae
US:FNMA.
When it comes to other types of loans, including FHA and jumbo mortgages, rates tend to be much higher.

A LendingTree
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study found that average offers for mortgage applicants with credit scores between 640 and 679 ranged from 3.87% to 4.79%.



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