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For the second week running US mortgage rates have dropped which provided homeowners with an incentive to refinance that is if they are still on their jobs. Lenders are now staring at new challenges as they strive with growing refinancing demand.

Mortgage rates drop in a second week running

In a statement on Thursday mortgage buyer, Freddie Mac stated that the 30-year mortgage average rate was 3.33% down from the previous week’s 3.5%. Since plunging to a new low of 3.29% at the beginning of March the average rates for a 30-year mortgage have been on a bumpy ride.

On the other hand, the average rate of 15-year mortgage dropped to 2.82% with a 0.6 point. A week ago the rate was 2.92% and it was around 3.56% last year. However, the 5-year adjustable rate jumped to 3.4% for 3.34% a week ago.

As the coronavirus pandemic continues to spread the economy has been hit hard and most housing deals are currently under pressure. With public showings diminishing and sales slowing a few buyers who are in the contract have tried to renegotiate prices.

Federal Reserve measures eased pressure on borrowers

Under the current circumstances, borrowers may be seeking ways to saving money and they are in better positions to capitalize on the falling rates. However, not all can benefit from the current situation. For instance, recently a lender canceled a mortgage refinancing deal for a homeowner from Texas who had lost his job in the oil industry. The situation appears as it will only benefit Americans who will be able to keep their jobs in this crisis. The recent interventions from the Federal Reserve helped ease the volatility in rates resulting from the fundamental concerns in secondary mortgage markets. The Fed’s measures provided some support to most borrowers who were likely to miss their monthly payments because of the impact of the coronavirus. Although the measures might have been well-intentioned they nonetheless resulted in new challenges for lenders who stare at the possibility of near term cash shortages because of missed payments and the disruption of risk hedges.