Mortgage Rates show improvement
Mortgage rates dropped significantly last week as a result of U.S. Bureau of Labor Statistics statistics showing that inflation had slowed in October,?
According to?Mortgage News Daily, the 30-year fixed rate average dropped by 60 basis points, from 7.22% to 6.62%
The 30-year fixed rate has decreased slightly, but overall mortgage rates are still much higher than they were last year, making it difficult for buyers to acquire homes
Although 30-year mortgage refinance rates remained stable last week at 6.62%, homeowners seeking a lower interest rate may want to have a look at 15-year rates instead as they are 62 basis points less than 30-year rates.
Mortgage interest rates last week are far lower than the highest yearly average rate?Freddie Mac?has ever recorded, which was 16.63% in 1981.
A 30-year fixed-rate mortgage had an average interest rate of 3.94% for 2019 a year before the pandemic disrupted global economies. 2021 saw the lowest yearly average rate in 30 years at 2.96%.
“This is the best argument to date that rates are done rising, but confirmation requires next month’s CPI to tell the same story,” said Matthew Graham, chief operating officer of Mortgage News Daily. “This was always about needing two consecutive reports of this nature combined with acknowledgment from the Fed that the inflation narrative is shifting.”
Even though there's hope that rates may be done rising, the cost of homeownership is still too high for many Americans to consider getting into the market.