It begins by discussing how mortgage rates rose quickly during November 2020, with the national average for a 30-year fixed loan increasing by 0.44%. However, rates have since stabilized, and as of November 18th, the national average for a 30-year fixed loan was 2.78%. This is still 0.32% lower than at the same time last year.
The article discusses how the recent faster-than-expected economic recovery, fueled by widespread availability of the coronavirus vaccines, has resulted in an increase in demand for mortgages. This demand is helping to prop up mortgage rates, which is beneficial for those looking to purchase or refinance a home.
In addition, the article explains how the Federal Reserve has committed to keeping its benchmark interest rate near zero in order to help stabilize the economy. This has resulted in low mortgage rates, and when combined with continued job growth and other positive economic indicators, it bodes well for the housing market.
In conclusion, the article highlights that low borrowing costs and high employment are helping to drive the current housing market. As long as this trend continues, mortgage rates should remain relatively stable. This is good news for both those looking to purchase or refinance a home, as well as those who are simply observing the market. Overall, the article is optimistic about the future of mortgage rates.
Mortgage rates have had a volatile ride in the past few months, but appear to be stabilizing as of November 18th. In the month of November alone, the national average for a 30-year fixed loan increased by 0.44%. This upturn in mortgage rates has been driven by an increase in demand for mortgages, due to the country's faster-than-expected economic recovery and widespread availability of coronavirus vaccines. Despite the increase, the current national average for a 30-year fixed loan is 2.78%, which is still 0.32% lower than at the same time last year. Low interest rates and high employment have helped to fuel the recent housing market activity, and this trend is expected to continue as long as the Federal Reserve keeps its benchmark interest rate near zero. This is positive news for both those looking to purchase or refinance a home, as well as those who are simply observing the market. Mortgage rates appear to be stabilizing, and this stability is expected to continue into the foreseeable future.
This article was contributed on Nov 20, 2023