One of the biggest lenders, Freddie Mac, reported a 30-year fixed rate mortgage at 2.80%, nearly unchanged from last week’s figure of 2.81%. This rate stands only 20 basis points above the all-time low rate of 2.60% set in late August this year. The 15-year rate has also remained steady at 2.48%, with no drastic changes during the past week.
The average 5-year ARM rate is now 3.03%, which is barely lower than the rate recorded a week ago of 3.04%. Additionally, a 7-year ARM rate has increased slightly by 0.02% after a few weeks of remaining unchanged. It is currently clocked in at 3.28%.
The market for jumbo loans has been relatively more volatile in comparison to the conventional market. The 30-year fixed rate for jumbos is now 3.10%, which is unchanged from the previous week. However, jumbo ARM rates have seen a considerable increase in the past couple of weeks, with the 5-year ARM reaching 3.20%, 0.09% points higher than it was one month ago. Though the 7-year ARM has slightly decreased since last week, it is still standing at 3.44%, which is 0.1% higher than it was four weeks ago.
Rates in the refinance market have also not seen much change over the course of lockdown. In fact, they have been quite stable over the past months, with no notable dips or peaks. The average rate for 30-year fixed refinance loans has remained steady at 3.12%. Meanwhile, 15-year refinance rates have been inching slowly down, currently clocking in at 2.72%, which is 0.06% lower than it was one month ago.
Overall, mortgage and refinance rates today, November 4, 2020, appear to remain historically low, with little signs of raising anytime soon. With many areas of the country still under some form of lockdown, there is a sense that the current economic conditions will persist for some time. As the U.S. continues to struggle, interest rates may remain low, making it an ideal time for anyone in the market for a loan to secure competitive terms.
This article was contributed on Sep 28, 2023
