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Silicon Valley Bank Crisis is the biggest bank failure in the US since 2008 (Lehman Brothers crisis/Global financial crisis). It is like a big shockwave that comes through the financial and tech circles. On Friday, 9 March 2023, the United States regulators seized the assets of the Silicon Valley bank after depositors began withdrawing funds en masse amid fears over the lender’s financial health.
Mortgage Rates in a downtrend following Silicon Valley Bank’s Crisis
As per the report of Mortgage News Daily In these failures of the US banks, the average rate on the popular 30-year fixed mortgage dropped to 6.57% on Monday.
What did Mortgage News daily say about this scenario?
The chief operating officer at Mortgage News Daily, Matthew Graham said that In order to have a lasting positive impact on rates, this mini-banking crisis has to drive a change in consumer behavior, and it is still all about inflation.
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Mortgage Rates in a downtrend following the Us Bank’s Crisis what does it mean?
The failure of Silicon Valley bank and Signature bank in the US may be the possible reason for the slowdown of mortgage rates in the first week of March month 2023.
As from the Data of Mortgage News Daily, this is down from a rate of 6.76% on Friday and a recent high of 7.05% last Wednesday. Also for the last week of January 2023, the Mortgage rates were near 6% which was down from 7% in October 2022.
What does the slowdown of Mortgage rates tell us?
A slowdown or fall in mortgage rates means that more buyers could be back in the housing market once again. Mortgage rates don’t exactly follow the federal funds rate, unlike whether the FED will raise or lower interest rates in the future.