Mortgage Applications (Mar.)

Distress in the MBS market meant mortgage rates were volatile over March, but they started and ended the month at a record low of 3.47%. While that has helped refinance demand, applications for home purchase have collapsed as the disruption from the coronavirus has increased. As unemployment surges to record highs, demand will see further falls. We expect applications will drop by 50% from their recent peak in January over the next couple of months.