Mortgage rates fall to new record low — here’s why some loan applicants won’t be offered them

Mortgage rates have dipped to a record low for the second time in as many months amid the global coronavirus outbreak.

Meanwhile, the 15-year fixed-rate mortgage dropped nine basis points to an average of 2.77%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.14%, down 14 basis points from a week ago. But whether borrowers get a loan featuring a record-low rate will depend on a number of factors. “While some borrowers could be quoted rates close to the lowest they’ve ever been, others either with less-than-excellent credit scores or seeking an atypical loan type — like jumbo or FHA loans — may be offered a much-higher rate,” said Matthew Speakman, an economist with real-estate firm Zillow ZG, -4.02% .

Also see:More than half of renters say they lost jobs due to coronavirus: ‘They could face housing situations that spiral out of control’

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Weekly mortgage applications to buy a home make a strong recovery, as rates hit a new record lowEvidence is mounting that homebuyers may be coming back to the market, after demand plummeted in the past month due to the coronavirus. Well this news will not make the bears happy. They only want bad news.
Source: CNBC - 🏆 12. / 72 Read more »