The 10-year Treasury note yield is trading at record lows this week as the Dow Jones Industrial average slipped into correction territory. The Dow was expected to drop even further at the start of trading Friday morning with futures pointing to at least a 400-point dip. This is the worst week for the Dow since the 2008 financial crisis. And this is all related to the fear of a global pandemic because of the coronavirus.

 

The drop in the market and Treasury yields has been fortuitous for the housing industry. Freddie Mac’s 30-year fixed-rate mortgage average is sitting at 3.45%. On Feb. 28, 2019, Freddie Mac’s 30-year fixed-rate average was 4.35%, making this a perfect opportunity for many people to refinance the home loan they got just one year ago and significantly reduce their interest rate. 

 

Purchase applications and pending home sales were also up this week according to the MBA and National Association of Realtors. The Commerce Department released its home sale numbers this week showing new home sales hitting a 12.5-year high in January. New home sales jumped by 7.9% to 764,000 units in January, the highest level since July 2007.

 

Liz Pritchard and Daniel Evans Movement Mortgage

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Office (252) 564-5023

Fax (252) 562-0642