Refinancing applications had spiked to the highest rate since 2009 as noted in march 2020. In the same period, 10-year Treasury yield touched 38 basis points, up from a 34 point drop from the previous day of the same month. Later on, in April. Mortgage rates reached an all-time low, while many economists are wondering if mortgage rates will go down from that point. The markets are highly unpredictable due to the latest global crisis that hit the economy after affecting public health. Will mortgage rates keep going down in 2020?
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Should You Lock the Mortgage Under a Favorable Rate?
Unpredictability has become one of the driving factors in the US economy as well as the situation with the global economy. Mortgage rates started to drop with the peak of the crisis while Federal rates reached zero. Treasury rates are not following federal rates, which is how rises and drops are likewise possible in times when uncertainty is the only certain thing. Unemployment rates are rising reaching the highest level since the Great Recession, while economists suggest that mortgage rates may keep dropping even though rising is a viable option. Many suggest using a lock on the rate while mortgage rates are still low and favorable.
What Will Happen to Mortgage Rates in June?
Mortgage rates have recently touched a low by 3.28%, which is one of the lowest and most favorable rates we have seen by far. Analysts are predicting a potential drop to 3% in June or mid-July; however, rates may not go lower than 3%. Average mortgage rates are slowly sinking below 3%, which is the best rate seen in 2020.
Can You Get Lower Mortgage Rates?
Alongside the dropping rates, as caused by the current t COViD-19 crisis, you can negotiate lower rates with lenders. Lenders have the autonomy to drop their rates and fees. However, you will be asked to make a written offer on our suggestion to lower mortgage rates before lenders may decide on the rates.
