Mortgage rates fall for first time in weeks, Freddie Mac data shows
30-year mortgage rate remains above 3% but rests at historic lows
Mortgage interest rates fell for the first time in weeks in early November, hitting 3.09% annual percentage rate (APR), according to the latest Primary Mortgage Market Survey from Freddie Mac. But despite this drop, experts said rates will soon be on the rise once again.
"While mortgage rates fell after several weeks on the rise, we expect future upticks due to stronger economic data and as the Federal Reserve pulls back on its stimulus," Freddie Mac Chief Economist Sam Khater said. "That said, the housing market remains favorable for consumers, as rates remain below pre-pandemic levels and continue to support sustainable purchase and refinance opportunities."
If you are interested in getting today's low interest rates, you could consider refinancing your mortgage now. Visit Credible to find your personalized rate without affecting your credit score and see how much you could save on your mortgage payment.
FHFA TO PERMANENTLY ALLOW DESKTOP APPRAISALS: HOW CAN IT MAKE THE MORTGAGE PROCESS EASIER?
Mortgage rates to rise after Fed begins tapering process
The 30-year fixed-rate mortgage decreased to 3.09% for the week ending Nov. 4. This is down from the previous week’s 3.14%, but up from last year when 30-year mortgage rates averaged just 2.78%. The 15-year mortgage rate also decreased, falling from 2.37% last week to 2.35%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) decreased to 2.54%, according to Freddie Mac. This was down from 2.56% last week and 2.89% last year.
But this week’s mortgage rate drop is likely to be temporary, experts said.
"In a vote of confidence in the current state and expected future of the economy, the Federal Open Market Committee (FOMC) officially announced a widely-expected pull-back on asset purchases," Realtor.com Chief Economist Danielle Hale said. "Starting in November and continuing in December, the Fed will reduce its purchase of mortgage-backed securities by $5 billion per month. In light of this move, mortgage rates are likely to resume a gradual rate of increase."
If you are looking to lower your monthly mortgage payment, now could be a good time to refinance while rates are low. Visit Credible to compare multiple mortgage lenders at once and choose the best option for you.
HIGH HOME PRICES COULD DROP IN NOVEMBER AS MORTGAGE RATES INCREASE, ECONOMIST SAYS
Is now a good time to buy a home?
With interest rates at historic lows, borrowers can save significantly on their monthly payments by taking out a mortgage today. And as homebuying traffic slows in the last months of 2021, economists say home price growth could also slow significantly, giving homebuyers the chance to purchase a house while rates remain low.
"Homebuyers have navigated fluctuating rates and rising home prices relatively well," Hale said. "The homeownership rate held steady in the third quarter of 2021, though it remains below early-pandemic highs. Looking forward, while rising home prices and mortgage rates mean higher overall housing costs, first-time homebuyers remain motivated by rising rents, which were up 13.6% in September."
If you are interested in buying a house or refinancing your current mortgage, contact Credible to speak to a home loan expert and get all of your questions answered.
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