30 Year Fixed
3.03%    -0.01
15 Year Fixed
2.69%    -0.03
10YR Treasury
0.68%    -0.0098
FNMA 30YR 3.5
105.39    0.00
FNMA 15YR 2.5
105.38    -0.05
Mortgage Rates Are Actually Lower This Week
May 21, 2020

Mortgage rates were mostly steady today for most lenders.  Those who changed generally did so in a friendly direction.  Either way, that means today's rates remain in line with all-time lows.  It also makes them markedly lower than last week.  Despite that fact, you're more likely to see news about rates rising just a bit week-over-week.  Who's telling you the truth?

To be fair, no one is lying to you.  It's just a question of timing and data sources.  Freddie Mac publishes a weekly rate survey every Thursday morning.  It's widely relied-upon as source material for all manner of media outlets.  The issue is that it is based primarily on responses received on Monday and Tuesday.  The 2nd half of the week isn't even counted.  That means Freddie's data missed the week's best improvement yesterday afternoon and this morning. 

Bottom line: in terms of actual daily mortgage rate quotes, the average lender is at all-time lows today and yesterday. While the improvement isn't massive, it is technically an improvement whereas the prevailing news suggests the opposite.  


Loan Originator Perspective

Rates were essentially flat Thursday, near record lows, and Friday's shortened bond session likely won't hold much drama.  For all intensive purposes, Memorial Day weekend started today for bonds.  I'm locking loans submitted to underwriting.  As a reminder, some lenders will not refinance loans that have been in forbearance.  Use it if necessary, but not capriciously, it has consequences. -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.   

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15 Year Fixed Rate Mortgage
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Today's Rates
Best Execution
Rate Change
30 Yr FRM 3.03% -0.01
15 Yr FRM 2.69% -0.03
FHA 30 Year Fixed 2.75% +0.00
Jumbo 30 Year Fixed 4.25% -0.10
5/1 Yr ARM 3.34% -0.08
Average Mortgage Rates
Rate Points Change
FHFA *
15 Yr. Fixed 0.00% 0.00 +0.00
30 Yr. Fixed 0.00% 0.00 +0.00
MBA **
30 Yr. Fixed 3.41% 0.33 -0.02
15 Yr. Fixed 2.88% 0.27 -0.04
30 Yr. Jumbo 3.66% 0.37 -0.03
30 Yr. FHA 3.46% 0.33 +0.09
5/1 ARM 3.19% -0.05 -0.07
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
MBS
Price Change
30YR UMBS 3.0 105.02 0.00
30YR UMBS 3.5 105.39 0.00
30YR GNMA 3.0 106.02 -0.14
30YR GNMA 3.5 107.11 -0.09
15YR FNMA 3.0 105.38 -0.05
15YR FNMA 2.5 104.48 -0.03
Treasuries
Yield Change
2 YR 0.1673% -0.0020
5 YR 0.3447% +0.0000
10 YR 0.6801% -0.0098
30 YR 1.3984% -0.0105
Prices as of: 5/21/2020 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.
Secondary Marketing Managers:
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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.