With the market in flux, lenders remain hesitant to make any major changes. The 30-year fixed mortgage rate currently stands at 3.00%, while the 15-year fixed rate is 2.50%.
As the economy slowly recovers from the pandemic-induced downturn, mortgage rates are holding steady. The Federal Reserve’s announcement last week that it would keep interest rates near zero through 2022 helped support this steady rate environment. The Fed also noted that it would continue to do whatever it takes to support economic recovery and further stimulate housing demand.
These low mortgage rates have been beneficial for those in the market for a new home or those looking to refinance their existing mortgage. Low mortgage rates mean that borrowers can secure mortgages or refinance loans at comparatively lower rates. Consumers with adjustable-rate mortgages and those nearing the end of their fixed-rate terms may be well-served by locking in these current rates.
In addition to the Federal Reserve’s support, other factors continue to influence mortgage rates. One of the key influences is the stock market. When investors are feeling confident, they tend to shift funds out of bonds and into stocks. This behavior tends to increase the yields on bonds and upwardly push mortgage rates.
Overall, the market is expected to remain steady over the coming weeks. However, if the economy remains on its recovery track, rates may begin to gradually rise. Now is an excellent time for borrowers to explore their refinancing or purchase options.
Mortgage rates remained stable on Monday, largely unchanged from their current levels. The Federal Reserve’s announcement last week that it would keep interest rates near zero through 2022 was a major factor in helping to support this steady rate environment. This has been beneficial for those in the market for a new home or those looking to refinance their existing mortgage, allowing them to secure mortgages or refinance loans at comparatively lower rates. Other factors that influence mortgage rates include the stock market, in which when investors feel confident they tend to shift funds out of bonds and into stocks, thus increasing the yields on bonds and pushing mortgage rates up. For now, the market is expected to remain steady over the coming weeks; however, if the economy continues to recover, rates may begin to gradually increase. It is advised for borrowers to take advantage of this low-rate environment and explore their refinancing or purchasing options.
This article was contributed on Nov 16, 2023
