Yields fell yesterday as both stocks and bonds fell. Rates held steady for the most part throughout all this, but are still lower than where they were last week. The 30-year fixed rate mortgage fell 4 basis points to 3.10% while the 15-year fixed rate mortgage fell 5 basis points to 2.52%.
After a long winter of post-pandemic disconnect, bonds have thawed, becoming more responsive to economic data. If this keeps up, we can expect another strong reaction after Friday’s jobs report, which mortgage rates might be tempted to follow. Another effect of spring is declining mortgage delinquency rates. Thanks to many households receiving their tax refunds and saving money on winter utility bills, March tends to experience a drop in delinquencies. This year, many families also received help in the form of stimulus money and reduced interest rates, leading to the biggest month-over-month drop in delinquencies in 11 years. In March, they fell from 16.4% to 5.02% and April may be a similar case with over 90% of borrowers having sent in their monthly payments by April 23. While this is good news for those at risk of default, it also means fewer foreclosed homes coming to the market to help with current supply shortages. As it stands, for the week of April 30th, housing inventory was down 58% from the same time last year.