The fall of Silicon Valley Bank has had a positive impact on mortgage rates. Rates began falling last Friday with the announcement of the bank’s collapse. The average 30-year rate was down from 7% to 6.76% on Friday and 6.57% on Monday.
That’s according to a Yahoo Finance article, quoting the latest Mortgage News Daily rate. Experts say this could mean a brief reprieve for homebuyers who have been waiting for rates to fall. But they’re not sure how long this reprieve will last, the article said.
“There’s still a lot of uncertainty but in the near term, I do expect mortgage rates to drop,” Daryl Fairweather, chief economist at Redfin, told Yahoo Finance. “And I expect buyers to take advantage of those mortgage rates because we’ve seen buyers be incredibly sensitive to those interest rates.”
Still, if buyers can lock in rates now, it will be worth it.
“The minute mortgage rates drop, affordability improves,” said Jeff Reynolds, broker at Compass and founder of UrbanCondoSpaces.com in the article.
But if the decline truly is short-lived, experts say they don’t expect homebuyers to come back in droves.