What Happened to Rates Last Week?

lower mortgage rates

The short holiday week felt an unexpected push for lower mortgage rates attributed to the escalating concern over the Coronavirus.

Mortgage Rates Lower

Mortgage backed securities gained +30 basis point from last Friday’s close which caused fixed mortgage rates to move lower compared to the prior week.

The Central Bank Palooza

European Central Bank – kept their key interest rate at 0.0%,  deposit rate at -0.5%,  and announced that they will beging a complete review of their economic policies (for the first time since 2003)

Bank of Canada – kept their key interest rate at 1.75%. kept their key interest rate at 1.75%.

Bank of Japan – kept their key interest rate at -0.1%.

People’s Bank of China – kept their key interest rate at 4.15%.

Mortgage Applications

Weekly Mortgage Applications – after surging over 30% two weeks ago, Weekly Mortgage Applications fell by -1.2% last week.

Both Purchase Applications and Refinance Applications fell by -2.0%.