On this day, lenders and borrowers alike are looking to cut costs and find the best deals. This year, however, the mortgage loan interest rate trends have remained steady despite the holiday shopping frenzy that typically takes place.
According to data from Freddie Mac, the average 30-year fixed rate mortgage (FRM) had a 3.72% rate this past week. That is only 0.02% lower than the rate just a month ago. Despite the drop in rates, the market appears to be stabilizing, which is beneficial news for consumers or potential homeowners.
The 15-year FRM also experienced a slight dip in the same week, dropping from a 3.14% to a 3.12%. The 5/1 adjustable rate mortgage (ARM) also saw a decrease in rate from 3.32% to 3.29%.
The housing market as a whole has been doing very well in 2020. Home prices have steadily increased throughout the year, with the National Association of Realtors (NAR) reporting that median sale prices rose 11.3% from June to October of this year. With such an increase in home sales and prices, it makes sense that mortgage loan interest rates have not changed drastically.
With all of these factors combined, it seems safe to say that there is no immediate need for homebuyers to worry about significant changes in mortgage loan rates. With the holiday season in full swing, many people are already focused on finding the perfect gifts for their loved ones. By keeping a close eye on interest rate trends, both buyers and sellers can take advantage of the current state of the market.
Summary: This article discusses how mortgage loan interest rates have remained relatively steady despite the Black Friday shopping frenzy that typically takes place. Data from Freddie Mac shows that the 30-year fixed rate mortgage rate decreased slightly by 0.02%, while the 15-year fixed rate mortgage and the 5/1 adjustable rate mortgage saw lower decreases. Despite these minor drops, the housing market as a whole has been doing very well in 2020, with median sale prices increasing by 11.3%. This indicates that there is no immediate need for homebuyers to worry about significant changes in mortgage loan rates. Those who are in the market for a home can still benefit from the current state of the market by keeping a close eye on interest rate trends.
This article was contributed on Jan 04, 2024
