It’s the first time in over two months that both the 30-year and 15-year fixed rate mortgages dropped. The 30-year fell 11 basis points to 3.34% while the 15-year fell 7 basis points to 2.81%.
Non-farm payrolls increased by 916,000 and the unemployment rate dropped to 6.0% in February, causing stocks to go up and Treasury yields to move down. Most of these increases in payroll came from new jobs in the service sector, which is expanding by its highest rate to date, 63.7, as the leisure and hospitality industries pick back up. In this time of economic resurgence, real estate continues to be an attractive asset. Fannie Mae’s fourth quarter 2020 National Housing Survey revealed that 73% of people see a house as a safe investment, compared to only 63% who view stocks as safe. However, real estate has also become a less attainable investment with 20% fewer listings this year than the same time last year and only 14% of homeowners planning to sell some time in the next three years.