After last week's refinance record lows, this week mortgage rates have steadily risen with the average rate for a 30-year fixed-rate mortgage now sitting at 2.89%.
This week has seen the lowest long-term mortgage rates which are still low despite the 0.08% increase from last week. The mortgage rate is still near its lowest level since May of 2020 when the average 30-year fixed rate was 2.81%.
The 15-year fixed mortgage rate has also risen this week by 0.05% and is now at 2.39%. This rate is still lower than the peak 3.4% in late August when mortgage rates increased significantly and is near the same level as the summer of 2020.
The five-year adjustable rate mortgage (ARM) is slightly higher this week compared to last week. It is currently sitting at 2.87% which is still below the 2.99% which was seen in mid-October.
In terms of mortgage applications, refinancing continues to be strong despite the increase in interest rates. The market composite index rose by 4% and the refinance index rose 6%. This surge has been attributed to people looking to take advantage of low rates before they rise too much and the election of Joe Biden being seen as a potential catalyst for economic recovery.
Overall, mortgage rates have risen this week, but remain near their all-time lows. Refinancing applications continue to increase despite the increase in interest rates as individuals look to capitalize on the low rates for now. With Joe Biden winning the election, the expectation is that the economy will improve which could cause mortgage rates to go up in the near future. Therefore, those who are considering refinancing should act quickly while rates remain stable.
This article was contributed on Dec 02, 2023
