The prices of mortgages went to two months in line with the broader bond market, as all eyes are educated in the housing market for signs of how the decisive spring sale season will shape.
The 30-year fixed-rate loan averaged 4.07% on May 1
The 15-year fixed rate loan averaged 3.53%, down from 3.57%. The 5-year Treasury-indexed hybrid adjustable interest rate averaged 3.66%, up three basis points.
Related: 3 out-of-box options for home buyers in a tough housing market
Fixed-rate mortgages follow the path to the reference US 10-year government bond
TMUBMUSD10Y, + 0.89%
who have rallied as investors withdrawn money from stocks. Demand – and price increase – yields returns. (Here's a previous look at how mortgage applications jump when prices fall, and vice versa.)
See: Is the era of double-digit housing gains behind us?
The housing market hit in 2018 as rising mortgage rates and higher housing prices put them out of reach for many people. But Americans will still be homeowners, it seems. Sales of newly built homes were higher in March, and some builders look forward to an "elongated" sales time for their products.
New construction still represents only about one-tenth of the housing market. The National Association of Realtors will report on April sales of previously owned homes next week. An early reading came last week from Glenn Kelman, CEO of Redfin Corp.
on a call to discuss the company's earnings.
"This acceleration in revenue and traffic is part of a wider development, only partly driven by a better housing market," Kelman said. "At times in March and April we have had as much demand as we can handle both in parts of our brokerage and in all our new businesses."
Related: New Redfin program will activate home purchase without agent