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%.
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%.