Spring is less than four weeks away and mortgage rates are right at all time lows. There are two reasons why mortgage rates have continued to move lower throughout February. First and most important is the Coronavirus and second is a slowing economy

The biggest impact to mortgage rates has been the Coronavirus however what is getting little attention are the weaker than expected economic reports that have come in during the month of February. One of the biggest disappoints for the economy was on Friday February, 21st.  The Markit PMI report came in lower than expected and has entered contracting territory. The number was 49.6 and a number below 50 shows contraction in the economy. As most informed mortgage professionals will tell you; bad economic news is good for mortgage rates and good economic news is bad for mortgage rates.

The Markit PMI report was bad and showed the manufacturing was contracting from last month but was still above 50.0. However the Service component came in below 50 which created concern among investors. Bonds rallied and mortgage rates improved. So what will mortgage rates do in March?

Difficult to say and a lot is going to depend on what happens with the Coronavirus. But at some point the fear about the Coronavirus will end and that could end up being a big negative for mortgage rates unless the economic data really turns south. 

The first big batch of economic news is next week and the big report is on Monday and then on Friday. On Monday we have the ISM Report and on Friday we have the BLS Employment report.

Current Mortgage Rates:

The number thing every homeowner wants is the best mortgage rate they can get. We'll the wait is over and now is the time to move forward. Currently we're seeing 30 year fixed mortgage rates below 3.50%, 20 year fixed mortgage rates below 3.375% and 15 year fixed mortgage rates below 3.125%.

Looking Forward To March:

As we look forward to the rest of Spring and the Summer months we will need to focus on the economy. Things like the Coronavirus come and go; the number one thing that impacts mortgage rates is the economy. One report I will be keeping a close eye on is the weekly unemployment claims. 

While one report is not going to have an impact on the market (unless a print of 350k+ was reported) a series of bad reports could. Will the global economic slow down finally impact the jobs market?

Employment has been a bright spot for the economy; if that goes that could become a big issue for the economy.

Additional Mortgage Resources:

One of the best resources online for mortgage rates is Mortgage News Daily. You can find a lot of great information on MND and I believe it's a great place for both consumers and mortgage industry professionals. Besides a lot of great educational articles the guy who runs the sight (Matt Graham) is super smart and accessible for questions.

A great feature is the MBSlive section. It's paid but you can get two free weeks to check it out. It might not be worth it for consumers but it's a must have for mortgage industry professionals. 

Then there is Lender411.com which is another great sight with a lot of great information. There is some good interaction between consumers and mortgage industry professionals.

And there is Zillow. Finding the best Loan Officer for your loan is something that Zillow offers. Consumers can give ratings for the Loan Officer they work with so it's a great resource to find an experienced and knowledgeable Loan Officer.

Thanks for reading!

Loan Officer Kevin O'Connor