Search This Blog

Thursday, June 18, 2020

Mortgage rates dip to new all-time lows

30-year fixed-rate mortgage averages 3.13% for the week ending June 18, the lowest rate in the history of the Freddie Mac Primary Mortgage Market Survey.
Compares with 3.21% in the previous week and 3.48% at this time a year ago.
“Purchase demand activity is up over 20% from a year ago, the highest since January 2009. Mortgage rates have hit another record low due to declining inflationary pressures, putting many homebuyers in the buying mood,” said Freddie Chief Economist Sam Khater.
That momentum, though, will be difficult to sustain as unsold inventory, which was already near record lows at the start of the pandemic, continued to fall since then, Khater said.
15-year FM averages 2.58% vs. 2.62% in prior week and 3.25% a year earlier.
5-year Treasury-indexed hybrid adjustable rate mortgage averages 3.09% vs. 3.10% in prior week and 3.48% a year earlier.
Mortgage REITs are gaining, with the iShares Mortgage Real Estate Capped ETF (BATS:REM) up 0.3%; among the larger gainers are MFA Financial (MFA +4.1%), Capstead Mortgage (CMO +0.7%), and Orchid Island Capital (ORC +1.5%).
Homebuilders aren’t faring as well — the iShares U.S. Home Construction ETF (BATS:ITB) slips 0.4%; and movement is modest for most names — D.R. Horton (DHI -0.8%), KB Home (KBH +0.0%), PulteGroup (PHM -0.6%), Toll Brothers (TOL -0.5%).
Mortgage-related ETFs: REM, MORT, DMO, PGZ
Homebuilder ETFs: ITB, XHB, NAIL, HOMZ, PKB
https://seekingalpha.com/news/3584198-mortgage-rates-dip-to-new-all-time-lows

No comments:

Post a Comment