November 12, 2020
Extraordinarily low mortgage rates continued to fall in the first week of November, further fueling an already fierce homebuyer’s market.
Mortgage rates are still on the decline as of the first week in November, falling not only from the same time last month but year-over-year as well.
The average interest rate on 30-year fixed mortgages was reported at 2.78% nation-wide last weekend; a 2.81% drop from the week just prior and 3.69% down from the same time last year. 15-year mortgages also fell, setting new records for all-time lows, according to the Mortgage Bankers Association.
With mortgage rates hitting these unprecedented lows, the home selling process is moving faster than ever. 2020 marked the first time in nine years that houses sold faster in October than September, at least at a national level. Additionally, applications to refinance mortgages are 80% higher than they were a year ago. Even homeowners who have refinanced within the past year are applying to refinance again, looking to get in on the extraordinarily low rates that are currently available.
This seemingly perpetual trend of falling mortgage rates in 2020 has correlated with a strong and sustained demand for housing as well. The prospect of a long, harsh winter in relation to the coronavirus is also pushing demand, as people look for more room in suburbia to brace themselves for a continued quarantine.
One downside of the low interest rates for homebuyers has been the aggressively competitive housing market. Although mortgage rates are nationally at an all-time low, home prices in many regions are at an all-time high because of the spike in demand. This has not seemed to drive away prospective buyers, however, as homes are still being snatched off the market almost as soon as they become available.
Marissa Saldivar // CIRB Journalism Intern // firstname.lastname@example.org