30 Year Fixed
3.08%    +0.00
15 Year Fixed
2.70%    +0.00
10YR Treasury
0.69%    +0.0000
FNMA 30YR 3.5
105.44    +0.02
FNMA 15YR 2.5
105.33    -0.03
Mortgage Rates Hold Steady
May 27, 2020

Mortgage rates managed to stay sideways today after beginning the week with a move higher yesterday.  This is a victory all things considered.

Rates take guidance from multiple sources.  When it comes to mortgages, the prices of mortgage-backed bonds are the key ingredients in determining rates.  While other factors had a massively outsized impact during the market volatility in March and April, mortgage rates have returned to their normal habit of following bond market cues.

If mortgages are taking cues from the broader bond market, where is the bond market getting its cues?  In the past few weeks, bonds are just as likely to be watching the stock market for guidance as anything else.  This is fairly logical considering both stocks and bonds have a stake in the nation's economic recovery and  the general push back against coronavirus impacts.  Progress pushes stock prices higher, and it also tends to put upward pressure on rates.  The big caveat here is that the correlation is best seen over short time horizons. 

In other words, mortgage bonds were indeed pointing toward lower rates when stocks were falling this morning and toward higher rates when stocks were rising in the afternoon.  But whereas the movement in stocks was impressively large, mortgage bond movement was relatively contained.  We certainly could see a few lenders begin the day with slightly higher rates tomorrow morning as a result of today's mortgage bond weakness, but the average lender remained in line with yesterday's levels as of 5pm Eastern time.

Loan Originator Perspective

Mortgage pricing is/was as good today as I've seen recently.  There may be some month end demand helping us.  I'm still locking loans once submitted to UW, our short term lock pricing is vastly superior to longer term locks. -Ted Rood, Senior Originator, Bayshore Mortgage

Ongoing Reminder on Forbearance

Coronavirus has created unprecedented challenges for people and industries.  For homeowners facing a big reduction in income due to coronavirus-related hardship, a forbearance can make excellent sense.  But for those who have the capacity to continue making mortgage payments, there are downsides to consider.  Forbearance itself does not hurt your credit score, but it does show up on your credit report.  This will affect your ability to qualify for a loan in the present and near future.  It can also result in your other creditors decreasing your available credit balances.  This has the unintended effect of increasing your ratio of debt to available credit which is a key component of credit scoring models.  Thus, even though forbearance itself is not hurting your credit, it can indirectly lower your credit score and it will absolutely impact your mortgage creditworthiness in the short term.   

30 Year Fixed Rate Mortgage
15 Year Fixed Rate Mortgage
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Today's Rates
Best Execution
Rate Change
30 Yr FRM 3.08% +0.00
15 Yr FRM 2.70% +0.00
FHA 30 Year Fixed 2.75% +0.00
Jumbo 30 Year Fixed 4.19% -0.01
5/1 Yr ARM 3.36% -0.01
Average Mortgage Rates
Rate Points Change
15 Yr. Fixed 0.00% 0.00 +0.00
30 Yr. Fixed 0.00% 0.00 +0.00
MBA **
30 Yr. Fixed 3.42% 0.33 +0.01
15 Yr. Fixed 2.87% 0.30 -0.01
30 Yr. Jumbo 3.71% 0.29 +0.05
30 Yr. FHA 3.41% 0.30 -0.05
5/1 ARM 3.08% 0.01 -0.11
Freddie Mac **
30 Yr. Fixed 3.24% 0.70 -0.04
15 Yr. Fixed 2.70% 0.70 -0.02
1 Yr. ARM 2.68% 0.20 +0.01
5/1 Yr. ARM 3.17% 0.40 -0.01
* FHFA averages are updated monthly.
** Mortgage Bankers Association (each Wednesday) and Freddie Mac (each Thursday) averages are updated weekly.
Secondary Markets
Price Change
30YR UMBS 3.0 105.06 +0.02
30YR UMBS 3.5 105.44 +0.02
30YR GNMA 3.0 105.52 +0.39
30YR GNMA 3.5 105.89 -0.06
15YR FNMA 3.0 105.33 -0.03
15YR FNMA 2.5 104.50 +0.03
Yield Change
2 YR 0.1838% +0.0101
5 YR 0.3526% +0.0064
10 YR 0.6949% +0.0000
30 YR 1.4585% +0.0140
Prices as of: 5/27/2020 5:05PM EST
MBS and Treasury data provided by Thomson Reuters.
Mortgage News Daily and MBS Live! are exclusive re-distributors of Real Time Thomson Reuters Mortgage Information.
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About This Report
Mortgage News Daily is a trusted source of mortgage rate market data and analysis, with over 1 million readers each month. Unlike many rate surveys, our survey is conducted on a daily basis and is designed to bring you the most current and accurate rate data available.  We use a proprietary formula to calculate averages based on best-execution rates from top lender's rate sheets, also taking into account feedback from hundreds of mortgage market professionals around the country.