The 30-year fixed rate mortgage continues to move up, increasing 2 basis points to 3.14%. Meanwhile, the 15-year fixed rate mortgage pared some losses, decreasing 5 basis points to 2.52%
Many seized the opportunity to buy low last week with Bank of America reporting that over $1.5 billion was poured into ETFs and single stocks (mostly tech-related). Meanwhile, in reaction to bond market stress, the Federal Reserve may need to make policy changes as soon as their next FOMC meeting on March 16. While they probably won’t touch benchmark interest rates for years to come, the Fed may start simultaneously selling shorter-dated notes and buying longer-dated securities. This will increase short-term interest rates while decreasing long-term interest rates. On the housing front, housing prices experienced their greatest increase in 8 years, moving up 10% from last January. As a result, until new home construction helps to lower prices, demand will probably wane in the medium-term.