Mortgage interest rates rose again, reaching 3.14% for the 30-year average fixed rate loan as confidence in the current economy and recovery from the COVID-19 pandemic increases, according to the latest primary mortgage market survey by Freddie Mac.
“The yield on 10-year treasury bills has trended higher amid falling new cases of COVID, growing consumer optimism, as well as widening inflation and persistent shortages. “said Sam Khater, chief economist at Freddie Mac. “Mortgage rates are also rising, but buying demand remains strong, showing that there is latent buying demand among consumers.”
If you are interested in taking a mortgage refinance to lower your monthly payments before interest rates rise, visit Credible to find your personalized interest rate without affecting your credit score.
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Economic recovery remains strong, pushing rates up
The 30-year mortgage rose to 3.14% of the annual percentage rate (APR) for the week ending October 28, from 3.09% the week before. This is a decrease from 2.81% last year. The 15-year mortgage also rose from 2.33% to 2.37% over the same period, but remained above 2.32% last year.
The average rate on a five-year Treasury-indexed variable-rate hybrid mortgage edged up from 2.54% to 2.56%, but remained below last year’s 2.88%.
“Investors have pushed mortgage rates higher following this week’s string of positive economic indicators, including a strong rebound in consumer confidence, higher new home sales and strong earnings reports,” said George Ratiu, director of economic research for Realtor.com. “The preliminary estimate of third quarter gross domestic product has shown that the economy has grown, although the gain has been less than expected.
“Consumer confidence is at the heart of these economic gains, and as the number of COVID cases continues to decline, the outlook for the next holiday retail season looks brighter, as long as U.S. ports can successfully unloading a long line of freighters, “Ratiu said.” And this positive economic outlook generally means higher mortgage rates for consumers. “
Borrowers can consider refinancing now before interest rates rise further. If you want to see how much you can save on your mortgage payments with a lower interest rate, visit Credible to get quotes from multiple lenders at once and choose the best mortgage lender for you.
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Although interest rates rise, they still stay near their all-time lows, giving homeowners another chance to cut rates before rising as the Federal Reserve changes its monetary policy.
“With the Fed expected to announce a cut in its asset purchases in light of stronger employment and higher inflation, I expect rates to continue to rise,” Danielle said Hale, Chief Economist of Realtor.com.
Homebuyers may also now have the opportunity to enter the housing market on the home buying front as rates remain low but competition in the market slows down.
“The real estate markets are showing signs of a new equilibrium, marked by a sustained pace of transactions and more moderate price growth,” Hale said. “As more and more homeowners put their homes up for sale, these homes are spending more time on the market. Many of the cities that were riddled with bidding wars earlier this year are finding a calmer real estate landscape, where price cuts bring skyrocketing demand. While the market remains dynamic, there are fewer competing offers and the unexpected has returned, two clear signs of a healthier housing market. “
If you want to refinance your mortgage to lower your monthly payments or if you want to take out a new mortgage amid current rates, contact Credible to speak to a mortgage expert and get all your questions answered, like what to expect for. closing costs, down payment options and even types of loans.
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