September 19, 2021

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Mortgage News

Delta variant fears take a toll on mortgage rates

“Concerns about the Delta variant and the overall course of the pandemic are undoubtedly affecting economic growth,” said Sam Khater, chief economist at Freddie Mac. “As the economy continues to recover, government bond yields have fallen and mortgage rates have followed suit. Unfortunately, many homebuyers cannot take advantage of the low prices due to the low inventory and high prices. “

Still, Khater believes that falling interest rates offer homeowners yet another opportunity to save money on monthly mortgage payments by refinancing.

Continue reading: FHFA delivers negative judgment on market refinancing fee

“The rising number of COVID cases caused government bond yields to collapse briefly this week. Then the returns rose again, ”said Holden Lewis, home and mortgage specialist at NerdWallet. “Mortgage rates tend to move more slowly than government bond yields, so they have barely moved in the meantime. If this wave of COVID worsens, mortgage rates are likely to fall further. “