Record Mortgage Rates Lows for the 12th Time This Year

The first of November saw mortgage rates fall again for the 12th time since the beginning of 2020. Currently, the record lows show an average interest rate of 2.78% on the 30-year fixed-rate and 2.32% on the 15-year fixed-rate mortgage. According to Freddie Mac, this is the lowest mortgage rate they have seen in close to 50 years.

Economists predict that rates have a good chance of getting even lower. In the next six to nine months we might see the 30-year mortgage drop as low as 2.3%. This will be inevitable if the Federal Reserve keeps supporting the economy and the Treasury prices remain low.

The bidding wars continue and will remain with the low rates. It is a seller’s market and there are tons of buyers who want to purchase a home. Homebuyers are refinancing and potential homebuyers are locking in the low rates.

“With a rising second wave of Covid cases, the challenge of social distancing continues to drive peoples’ quest for a housing solution,” said George Ratiu, senior economist for Realtor.com.

Ratiu said the demand for homes is still very strong even in November. This is a change from historical and seasonal trends of the past. The lack of inventory is pushing home prices up.

“Despite the uncertainty that we’ve all experienced this year, the housing market, buoyed by low rates, continues to be a bright spot,” said Sam Khater, Freddie Mac’s chief economist.

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