Information compiled by Freddie Mac shows that mortgage rates decreased on a monthly basis. As of end of March, the 30-year FRM – Commitment rate, declined by two basis points to 3.45 percent from 3.47 percent in February. The cycle peak was 4.87 percent in 2018 November.
Given the market volatility due to the rapidly spreading Coronavirus COVID-19, the Federal Reserve cut the benchmark interest rate by 100 basis points on March 15th to a range of 0.00-0.25 percent.
At the end of December, the 10-year Treasury rate, was at 1.92 percent. Currently, it stands at 0.63 percent. The recent decline in the 10-year Treasury rate has contributed to lower mortgage interest rates in the last few weeks. The average 30-Year Fixed market rate, according to Freddie Mac, is was at 3.50 percent at the end of March. At NAHB, we expect the mortgage rates to decline further to near 3 percent as bond market rates decline due to the coronavirus fears. At the beginning of 2019, the average 30-Year Fixed market rate was 4.51 percent.