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Mortgage Rates Are Increasing As Lenders Try To Manage Volume

ByAlex Carlcucci
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BREAKING NEWS: Mortgage Rates Are Increasing As Lenders Try To Manage Volume

  • The coronavirus outbreak is officially a global pandemic
  • The World Health Organization (WHO) has declared the coronavirus outbreak officially a global pandemic on Wednesday, March 11th, 2020
  • The virus has shaken the U.S. equities markets and shaken up the U.S. economy since it was discovered in Wuhan China last December 2019
  • The Dow Jones Industrial and other financial markets had a major market sell-off entering into correction territory two weeks ago
  • The Dow sank 2,300 points yesterday entering a bear market
  • Today, the market opened up sharply higher
  • However, the Dow is now trading off its session highs
  • President Donald Trump is expected to have a press conference today at 3.0 PM EST to declare a national emergency due to the coronavirus pandemic
  • In general, when stock drop and the yield on the 10-year US Treasuries drop, mortgage rates drop as well
  • Mortgage rates have plummeted to historic record lows
  • However, mortgage companies are increasing rates and when they should be lowering them
  • Many homeowners who have their refinance mortgage applications are on standstill mode due to mortgage rates skyrocketing this week

In this breaking news article, we will discuss and cover why Mortgage Rates Are Increasing As Lenders Try To Manage Volume.

Rates Are Increasing This Week Confusing Consumers

Mortgage Rates Are Increasing this week at an alarming rate.

  • This holds true even as the 10-year Treasury yield plummeted to new record-setting lows
  • Many consumers are hearing all over the news that mortgage rates are tanking to record historic lows
  • However, they are getting quoted higher rates by lenders
  • Mortgage Rates Are Increasing nationwide due to the massive volume of new mortgage loan applications

Some lenders have stopped taking new mortgage applications until they can clear out their existing volumes and relieve capacity.

2020 Mortgage Rates Forecast

Record Low Mortgage Rates And Housing Market Forecast

The team at Gustan Cho Associates is confident mortgage rates will drop. When will it drop? Again, nobody has a crystal ball. However, we expect rates will be dropping and adjusting in the coming days and weeks. Once lenders and investors have cleared and closed their locked loans, they will come to their senses and price mortgage rates accordingly.

Where Do We Stand With Mortgage Rates Versus Stock Market Volatility

On paper, mortgage rates hit an all-time historic record low. However, lenders are increasing mortgage rates. This all happened this week. Every day this week, lenders have been increasing mortgage rates. Let’s take a case scenario. Mortgage rates were at 3.125% at Gustan Cho Associates. On Monday, rates have increased to 3.5%. On Tuesday of this week, mortgage rates shot up to 4.25%. Yesterday, mortgage rates were at 4.5%. Today, mortgage rates skyrocketed to 4.75%. Lenders have been inflating rates when nothing has changed in the markets. Actually, mortgage rates for prime borrowers dropped and lenders are increasing rates due to being at full capacity. In the meantime, borrowers who did not lock their mortgage rates last week are on standby for lenders to drop and adjust mortgage rates.

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