Rates continued their streak leading to the best three weeks in nearly a year. The 30-year fixed rate mortgage fell 8 basis points to 3.17%. The 15-year fixed rate mortgage fell 10 basis points to 2.62%.
In other good news for real estate, this is the first week in 52 weeks that active inventory has increased. Currently, there are 312,000 unsold single-family homes in the U.S., an increase of 1.6% from last week. Typically, houses get pushed to market around mid-March in order to prepare for the spring buying season. This year has been slightly different due to February’s ultra low rates and inclement weather, which spurred many buyers to action and slowed down construction, respectively. By now, however, sales and construction have both picked back up again. As for mortgage rates, their future remains unclear. If all goes well, rates will likely continue to fall before bottoming out some time in summer 2021. If not, they will likely follow the suit of Treasury yields, which may have only temporarily lowered as a result of traders buying up short positions and having to cover them as bonds improved.