Economic research

Mortgage rates drop slightly as labor shortage continues

Freddie Mac Mortgage Rate December 9, 2021

What happened to mortgage rates this week:

Freddie Mac’s fixed rate for a 30-year loan fell 1 basis point to 3.10% this week, marking the fourth straight week of mostly sideways movement. Investors reacted to job vacancies report, pointing to widespread labor shortages likely to put upward pressure on wages through 2022. Markets focus on price index consumer data this week and indications of the path of inflation, as the Federal Reserve’s FOMC meets next week. The central bank has indicated that it may accelerate the reduction of its assets and possibly resort to other monetary policy changes to stem what appears to be longer-lasting high inflation.

What does that mean:

Property markets remain competitive in a historically slower time of year. The typical home was only 47 days on the market, 9 days less than a year ago, as buyers continue to search for their next home and interest rates remain low. The search for affordability is a priority heading into 2022. Realtor.com’s top housing markets for 2022 highlight the fact that millennials are entering their family-forming years and are looking for quality of life, more space and lower cost of living. The report highlights mid-sized cities with strong local economies, amenities, and accessibility to remote work. These markets are expected to play an even bigger role for first-time buyers, many of whom have been frustrated by the high cost of large coastal cities.


George RatiuGeorge Ratiu

George Ratiu