Mortgage rates are the lowest rates we have seen in years as it continues to shift in response to a stagnant country shutting down. On May 13, 2020, the average 30-year fixed-rate mortgage shows increases, but both the average 15-year fixed-rate mortgage, and the average rate on 5/1 adjustable-rate mortgages both decreased.
As rates continue to shift from day to day, the country’s slow reopening will hopefully add new supply to the previously stagnant market. This new influx should slowly help to create the demand that has been missing over the last few months. In response, mortgage rates will continue to reflect economic activity. Experts expect rates will increase over time as the world slowly adjusts to a new normal, and the market struggles to recover from the drastic effects of COVID-19.
Current Mortgage Rates
|30-Year Fixed Rate||3.520%||3.750%|
|20-Year Fixed Rate||3.480%||3.710%|
|15-Year Fixed Rate||2.920%||3.170%|
|10/1 ARM Rate||3.580%||3.840%|
|7/1 ARM Rate||3.390%||3.820%|
|5/1 ARM Rate||3.310%||3.890%|
|30-Year VA Rate||3.720%||3.760%|
|30-Year FHA Rate||3.510%||3.650%|
|30-Year Fixed Jumbo Rate||3.630%||3.700%|
|15-Year Fixed Jumbo Rate||3.010%||3.050%|
|7/1 ARM Jumbo Rate||3.420%||3.780%|
|5/1 ARM Jumbo Rate||3.190%||3.660%|
How Does this Effect Today’s Housing Market?
Lower mortgage rates play a huge role in a buyer’s purchasing power. There is a flip side though…
While lower rates make more expensive homes available at a lower monthly payment, they also effectively reduce the number of homes for sale overall, increasing competition for buyers.
Industry professionals, buyers and sellers are struggling with the difficulties that social distancing has brought to showings, inspections and closings. But don’t be discouraged. We still see many motivated sellers and with new technologies replacing some of the more traditional aspects of the process, homes are selling, buyers are purchasing and we are all working together to ensure the process moves as smoothly as possible.