“It’s positive in that we’re seeing more interest in refinances; people are hearing a lot about the rates dropping and wanting to take advantage,” Jason Crigler of Crown Mortgage told Mortgage Professional America. “Whether it’s good for the economy is another issue, but housing appears to still be strong.”
Mortgage rates fell this week amid world-wide economic turmoil.
The average 30-year fixed rate fell to 4.03% from 4.06% over the course of last week, and the 15-year fixed dropped to 3.19% from 3.28%.
“Nervousness surrounding the Chinese economy and the extent of the slowdown in their growth rate sparked a sell off in global stock markets and a flight to safety in bonds,” Bankrate said in a release. “Mortgage rates, and the government bond yields to which they are closely related, dropped in response.”
Early last week, a number of stock indexes reported significant drops. And while many have bounced back there is still speculation that the Fed will push its planned rate hike to a later date, meaning the record-low rate environment may live on for a while longer.
“The rocky financial markets also raise the possibility of the Federal Reserve further delaying their plans to hike interest rates, which also helps to keep a lid on mortgage rates,” Bankrate said.
If that’s the case, mortgage originators can expect to continue receiving refinance business from clients.
Mortgage rates have fallen in the wake of global economic uncertainty, and broker clients are taking advantage.