Mortgage rates dip to annual low: Will they stick?
"It's impossible to know how timing will play out, but I definitely see the ingredients in place for new all-time lows sometime soon," said Matthew Graham, chief operating officer of Mortgage News Daily. "It actually concerns me how convinced I am that this will happen eventually."
"You have the makings for quite the rate-friendly environment," Graham said.
Lower rates did prompt a reboot in mortgage refinances last week, but did nothing to spur homebuyers. Mortgage applications to purchase a home continue to weaken. Buyers and sellers think now, the height of the spring market, is a bad time to make a deal, according to Fannie Mae, which just recorded its worst monthly home purchase sentiment in 18 months.
While rates may be low, mortgage credit availability actually tightened in March, according to the Mortgage Bankers Association. The tightening came largely in conventional loans, while government programs such as FHA and VA lending relaxed slightly.
Domestic economic data could drive rates in either direction this week, with reads on retail sales and producer prices on Wednesday and the all-important consumer price index Thursday.