Freddie Mac Mortgage Rate November 4, 2021
What happened to mortgage rates this week:
the Freddie Mac The fixed mortgage rate for a 30-year loan erased last week’s gain, falling 5 basis points to 3.09% as investors continue to assess mixed economic signals ahead of the jobs report. Friday. Private hiring data suggests that the labor market remains buoyant for job seekers. Additionally, while manufacturing and services indices suggest continued growth, supply chain challenges continue to raise concerns across all sectors. This concern is perhaps most notable in the auto industry, where the pace of sales was more than 20% below last year’s levels. Additionally, while the election results provide certainty as to who governs, political uncertainty remains as bills to enact the Presidential Plan for Infrastructure and Families continue to be pending. This policy and economic uncertainty prevented another rate hike this week.
What does that mean:
In a vote of confidence on the current state and expected future of the economy, the Federal Open Market Committee (FOMC) officially announced a widely anticipated withdrawal from asset purchases. Starting in November and into December, the Fed will reduce its purchases of mortgage-backed securities by $5 billion per month. In light of this movement, mortgage rates should resume a gradual rate of increase.
Homebuyers have managed fluctuating rates and rising home prices relatively well. the the homeownership rate remained stable in the third quarter of 2021, although it remains below the highs of the start of the pandemic. Going forward, although rising house prices and mortgage rates will drive up overall housing costs, first-time buyers remain motivated by rising rentsup 13.6% in September.