Mortgage rates jump back up to January high, as coronavirus fears put chill on spring housing market

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Mortgage rates jump back up to January high, as coronavirus puts chill on spring housing market

The average rate on the 30-year fixed fell to 3.13% on March 2nd, the lowest ever recorded by Mortgage News Daily. That rate is now back up around 3.65%.

Applications to refinance a home loan jumped 79% last week compared with the previous week, according to the Mortgage Bankers Association. Applications for home purchase loans were up just 6% for the week. In a quick survey, 16% of Realtors reported seeing a drop in buyer interest related to coronavirus and one in four sellers are changing how they market their homes, some going entirely online, according to the National Association of Realtors. Just 3% of Realtors said they had clients remove their homes from the market due to coronavirus.

Higher priced housing markets are likely to see more of an effect, as buyers are more influenced by moves in the stock market. The recent rout already has New York City buyers pulling back, and that is the case in other major metropolitan markets.

 

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