Mortgage rates dip below 3%
Freddie Mac economist says he sees purchase demand remaining 'strong into next year'
Mortgage rates have dipped below 3% again for the first time since early October, sparking a rebound in mortgage applications.
Freddie Mac's latest weekly Primary Mortgage Market Survey shows 30-year fixed-rate mortgages averaged 2.98% for the week ending Nov. 10, after coming in at 3.09% the week before. The average rate a year ago was 2.84%.
Fifteen-year fixed-rate mortgages were at 2.27% according to the latest numbers, after sitting at 2.35% in the prior survey. Last year at this time, the 15-year FRM was at 2.34%.
"Despite the re-acceleration of economic growth, the recent bond rally drove mortgage rates down for the second consecutive week," Freddie Mac chief economist Sam Khater said in a statement announcing the results.
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"These low mortgage rates, combined with the tailwind of first-time homebuyers entering the market, means that purchase demand will remain strong into next year," Khater continued, adding, "however, affordability pressures continue to be an ongoing concern for homebuyers."
Also this week, the Mortgage Bankers Association reported weekly increases across the board on mortgage applications, with refinances seeing a boost of 7% and purchases climbing 3%.
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Joel Kan, MBA's associate vice president of economic and industry forecasting said in a statement, "The dip in rates might have helped to bring some buyers back into the market, but housing inventory is still extremely low and price growth remains elevated."
FOX Business' Ken Martin contributed to this report