The Washington Post - 22.02.2020

the

washington

post

.

saturday,

february

22,

2020

EZ

4

sent the virus right now, rates

would be climbing.”

The yield on the 10-year Trea-

sury drifted up to 1.56 percent

Wednesday but has clung to a

narrow range most of the month.

“It appears the equity markets

and bond markets have differing

opinions regarding the contain-

Mortgage Rates

BY KATHY ORTON

Mortgage rates were little

changed this week.

According to the latest data

released Thursday by Freddie

Mac, the 30-year fixed-rate aver-

age ticked up to 3.49 percent

with a n average 0.7 point. (Points

are fees paid to a lender equal to

1 percent of the loan amount and

are in addition to the interest

rate.) It was 3.47 a week ago and

4.35 percent a year ago. The

30 -year fixed-rate average has

remained below 3.5 percent for

three weeks in a row.

The 15-year fixed-rate average

was slightly higher at 2.99 per-

cent with an average 0.8 point. It

was 2.97 percent a week ago and

3.78 percent a year ago. The

five-year adjustable rate average

slipped to 3.25 percent with an

average 0.2 point. It was 3.28

percent a week ago and 3.8 4

percent a year ago.

Recent favorable economic

data has done little to move

rates. The consumer price index

and producer price index were

better than expectations. Al-

though housing starts fell, build-

ing permits were near a 13-year

high.

“January’s decrease in single-

family home construction came

on the heels of a strong Decem-

ber that was helped by warmer

weather,” said Bill Banfield, exec-

utive vice president of capital

markets at Q uicken L oans. “With

two strong months, it is clear

warmer weather has helped the

housing market earn some extra

credit points. This could help

generate positive momentum

heading into the spring home-

buying season.”

Such good economic news

normally would send mortgage

rates higher, but investors re-

main concerned about the effect

the coronavirus outbreak will

have on the economy.

“The coronavirus and its im-

pact have yet to be felt to its

fullest extent — although Apple

warned that it will have an

impact on its numbers,” s aid Jim

Sahnger, mortgage planner with

C2 Financial in Jupiter, Fla. “Un-

til we see how that plays out,

rates should remain stable. Ab-

ment of the coronavirus and its

potential for slowing the global

economy,” said Michael Becker, a

branch manager with Sierra Pa-

cific Mortgage in Lutherville,

Md. “Equity markets have rallied

with the S&P up 5 percent from

its dip in January, while bond

markets have seen Treasury

yields hold near their multiyear

lows.”

Because mortgage rates tend

to mimic the movement of long-

term bonds, the 10-year yield is

the most closely watched indica-

tor of where rates are headed.

Bankrate.com, which puts out a

weekly mortgage rate trend in-

dex, found nearly two-thirds of

the experts it surveyed predict

rates will remain relatively un-

changed in the coming week.

“Looking forward, I think it’s

clear that bond markets are go-

ing to take a more wait-and-see

attitude when it comes to the

economic dangers of the corona-

virus outbreak,” Becker said. “Be-

cause of that, I think mortgage

rates will hold steady in the

coming week.”

Meanwhile, mortgage applica-

tions retreated as rates moved

higher. According to the latest

data from the Mortgage Bankers

Association, the market compos-

ite index — a measure of total

loan application volume — de-

creased 6.4 percent last week.

The refinance index w ent down 8

percent, while the purchase in-

dex slid 3 percent.

The refinance share of mort-

gage activity accounted for 63.2

percent of applications.

“A gradual uptick in mortgage

rates led to a pullback in mort-

gage applications last week, but

the annual increases for both

refinances and purchase activity

remain robust at 165 percent and

10 percent, respectively,” said

Bob Broeksmit, MBA president

and CEO. “With the s pring h ome-

buying season around the cor-

ner, housing supply in many

parts of the country is struggling

to keep up with demand. Fortu-

nately, residential construction

has picked up in recent months

and should help increase the

available options for prospective

buyers.”

[email protected]

Figures hold steady despite strong economic reports

Source: Freddie Mac

Weekly averages for

popular mortgage types

2.99

THE WASHINGTON POST

6%

4

5

3

2

1

’18 ’19 ’20

3.49

30 -YEAR FIXED

15 -YEAR FIXED

5-YEAR ARM

3.25

ADVERTISEMENT

MeetThe NewYou At K. Hovnanian’s

FourSeasons at KentIsland

Luxury Condominiums Open for Pre-Sales and Under Construction Now. Amenities Construction Begins in 2020.

Advertisement

Just 17 miles to Annapolis and less than 50 miles to

Baltimore and D.C., the resort life has arrived on this

gorgeous island, a boater’s paradise at the gateway

to Maryland’s Eastern Shore, just across the

Chesapeake Bay Bridge.

K. Hovnanian’s Four Seasons at Kent Island is the

region’s newest 55+ Active Lifestyle Community.

Decades in the making, this long-awaited community

is finallya reality.

Residents are already enjoying life in spacious single

family homes. New luxury condominiums are selling

now. The models are under construction and will

GRAND OPEN this spring. Meanwhile, construction

will begin this year on a new waterfront clubhouse on

the Chester River, as well as other exciting amenities

that residents will enjoy each day.

If you’ve been dreaming of making the move to a

low-maintenance,amenity-filledlifestyle,thisis your

chance to make it your reality. If you’ve worked hard,

taken care of your responsibilities and provided for the

ones you love, now is the time to meet the new you.

Will you take your canoe or kayak and spend a

peaceful morning admiring the many gorgeous species

of birds that call this place home? Will you motor out

andreel in a fewrockfishfromthebay? Mayberaise

the sails and enjoy the breeze, the views and a perfect

sun-splashed day on the water?

Or you could stroll along the Cross-Island Tr ail.

Stretching for 7.5 scenic miles –– and passing through

the community –– it’s one of the area’s leading hiking

and biking destinations.

Then meet friends for a crab feast at Kent Narrows,

a favorite spot for locals and an area with a wide array

of waterfront restaurants.

Family and friends will delight in visiting your slice of

Chesapeake paradise, arriving thrilled to enjoy all the

resort-style amenities and nearby attractions.

Ready to meet the new you?

Get to Kent Island now!

While you’re here you can tour the nearly

complete luxury condominiums.

See a Sales Consultant or visit khov.com for full details.

Equal Housing Opportunity.

ADVERTISEMENT