According to the Mortgage Bankers Association’s latest survey, the average rate for a 30-year fixed-rate mortgage fell to 2.84%, the lowest level it has been in nearly four months. This is despite a slight increase in the cost of borrowing money from one month earlier, which was 2.81%.
Meanwhile, 15-year fixed-rate mortgages held steady at 2.27%, the same as the prior week. This has been the case for two weeks in a row now, after having dipped slightly from 2.32% the prior two weeks. The adjustable-rate mortgage (ARM) meanwhile, also remained unchanged, at 2.67%.
These low rates continue to make homeownership attractive to prospective buyers. In addition to the current low rates, many lenders are also offering loans with no or reduced closing costs, making it more affordable to buy a home in today’s market.
The low rates and other incentives are broadly beneficial to the housing market as a whole. Existing-home sales rose 5.6% in October, according to the National Association of Realtors. The median home price was up 14.9% year-over-year, and the inventory of homes for sale is currently down 17.2% from a year ago. These factors all indicate a healthy housing market, and these low mortgage rates help ensure that the current trend continues.
Analysis:
The mortgage market has been experiencing low rates for the past few months. According to the Mortgage Bankers Association's recent survey, the average rate for a 30-year fixed-rate mortgage fell to 2.84%, the lowest level it has been in nearly four months. This is despite a slight increase in the cost of borrowing money from one month earlier, which was 2.81%. Meanwhile, 15-year fixed-rate mortgages held steady at 2.27%, and adjustable-rate mortgages also remained unchanged, at 2.67%.
Low mortgage rates continue to make homeownership attractive to prospective buyers. In addition to the current low rates, many lenders are also offering loans with no or reduced closing costs, making it more affordable to purchase a home. Low mortgage rates are also beneficial to the housing market overall. Existing-home sales rose 5.6% in October, according to the National Association of Realtors. The median home price was up 14.9% year-over-year, and the inventory of homes for sale is currently down 17.2% from a year ago. These numbers all show a robust housing market and demonstrate why low mortgage rates are essential to maintaining this trend.
This article was contributed on Nov 21, 2023
