For the first time in a while, the 30-year mortgage is down 7 basis points at 5.28%. Meanwhile, the 15-year fixed rate mortgage is up 6 basis points at 4.71%.
Prepare for more volatility heading into May as investors search for clarity around Russia and Ukraine, inflation projections, and Federal Reserve policies. This week, volatility worked in our favor (at least for the 30-year mortgage), but this might not be the case next week. Because rates have been pushing higher, it becomes more and more likely that we’ll see some sort of support or correction soon. Just this week, the 10-year Treasury yields hit a week-over-week low. Whether this is an isolated case due to China initiating another COVID-19 lockdown and EU bonds bouncing, we’ll have to wait and see. On the real estate side, sales of new single-family homes fell in March to 736,000. Even though inventory was higher with a 6.4 month supply (4-6 months is considered normal), sales dropped 8.6% month-over-month and 12.6% year-over-year.