Mortgage rates climb this week; 30year loan at 3.65%

WASHINGTON — U.S. longterm mortgage rates climbed this week in a whipsawing market amid deepening anxiety over devastation to the economy from the coronavirus pandemic.

Home loan rates had hit alltime lows two weeks ago. Mortgage buyer Freddie Mac reported Thursday that the average rate on the benchmark 30year loan jumped to 3.65% this week from 3.36% last week.

Freddie Mac said the shortterm rise was due to mortgage lenders increasing prices to deal with booming demand for refinancing into loans at historically low rates.

The average rate on the 15year fixedrate mortgage rose to 3.06% from 2.77%.

The recent decline trend in mortgage rates has been driven by investors shifting money out of the stock market and into the safety of U.S. Treasurys as the crisis in confidence around the global viral outbreak has worsened. Longterm mortgage rates tend to track the yields on the 10year Treasury note, so they typically fall in tandem.

Financial markets have shuddered amid a cascade of cancellations and shutdowns across the globe due to the COVID19 virus. Wide swaths of the U.S. economy have ground closer to a standstill as authorities ask Americans to stay home to slow the spread of the virus.

After weeks of stunning losses, U.S. stock prices seesawed between gains and losses on Wall Street Thursday. Investors are weighing the growing likelihood of a recession against the massive, emergency efforts by the Trump White House, Congress and other authorities around the world to shore up economies.

The Dow Jones Industrial Average was up about 300 points, around midday, while the broader Standard & Poor’s 500 index was up around 30 points, or more than 1%.

The record low mortgage rates have been a boon to potential homebuyers, and they give many homeowners an opening to refinance into lowerrate loans to free up money to spend or save.

But prospective buyers may be reticent to shop for homes amid the coronavirus outbreak, seeking to avoid social contact, experts note. That could slow home sales. And ultralow mortgage rates aren’t likely to produce a significant rise in home sales this year because the supply of homes for sale remains at historic lows.

Each week, Freddie Mac surveys lenders to compile its national mortgage rate figures. The average doesn’t include extra fees, known as points, which most borrowers must pay to obtain the lowest rates.

Steve Helber / Associated Press File Photograph This June 13, 2019, file photo shows a new home is for sale in Mechanicsville, Va. On March 12, U.S. longterm mortgage rates were mixed after hitting alltime lows amid anxiety over risks to the economy from the deepening coronavirus crisis.