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Mortgage rates fall to 2-month downturns due to market noise





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Builders say they look forward to an "elongated" sales season.

Mortgage rates fell to two months' low levels, in line with the broader bond market, just as all eyes are educated in the housing market for signs of the decisive spring season.

The 30-year fixed-rate loan averaged 4.07% on May 1

6 this week, Freddie Mac said Thursday, down three points. It was the third straight weekly downturn for the popular product, and put it back on its second lowest level in 2019.

The 15-year fixed rate averaged 3.53%, from 3.57%. The 5-year Treasury-indexed hybrid adjustable rate mortgage rate averaged 3.66%, up three points.

Related: 3 options outside the home for home buyers on a hard housing market

Fixed-term mortgages follow the lawsuit for the reference value US 10-year government bonds

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who have rallied as investors pulled money out of stock. Demand – and prices rise – reduces returns. (Here's a previous look at how mortgage loans jump when prices fall, and vice versa.)

See: Is the era of double-digit house price gains behind us?

The housing market hit in 2018 as rising mortgage loans and higher housing prices made them inaccessible to too many. But Americans still want to be homeowners, it seems. Sales of newly built homes were higher in March, and some builders are looking forward to an "elongated" sales season for their products.

However, new construction is still only about one tenth of the housing market. The National Association of Realtors will report on April sales of previously owned homes next week. An early reading came last week from Glenn Kelman, CEO of Redfin Corp.

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on a call to discuss company performance.

"This acceleration in revenue and traffic is part of a broader trend that is only partly driven by an improved housing market," Kelman said. "Sometimes in March and April we have had as much demand as we can handle both in parts of our broker and in all our new companies."

Related: New Redfin program will activate home purchase without agent


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