Financing

Borrowers Struggle to Secure Loans Amid Mortgage Market Instability

April 10, 2020

Experts expect even more mortgage market volatility as a wave of borrowers ask lenders for payment delays through the Cares Act. But if lenders can get things under control, rates may dive even lower, according to Sam Khater, Freddie Mac’s chief economist. After earlier ups and downs, the mortgage rates this week have been comparatively stable. But for now, potential homebuyers are still having trouble securing mortgage loans. Between delays processing applications and the variation of actual rates seen from Freddie Mac's average, getting a mortgage loan even with record-low rates is turning out to be a headache.

Mortgage rates largely remained unchanged over the past week, but their ups and downs since the beginning of the year have created challenges for those looking to get a loan to buy a home.

The 30-year fixed-rate mortgage remained flat at an average of 3.33% during the week ending April 9, Freddie Mac FMCC, +1.04% reported Thursday. A year ago, the 30-year fixed-rate mortgage averaged 4.12%.

The 5-year Treasury-indexed hybrid adjustable rate mortgage also stayed the same over this last week, averaging 3.4%. The 15-year fixed rate mortgage, meanwhile, fell five basis points to an average of 2.77%.

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