Freddie Mac Mortgage Rate November 24, 2021
What happened to mortgage rates this week:
After last week’s spike, Freddie Mac’s fixed rate for a 30-year loan held steady at 3.10% heading into the Thanksgiving holiday. Home sales data continues to show strong demand for homes, amid tight supply and rising prices. Meanwhile, there are mixed policy updates for investors to digest. President Biden reappointed Fed Chairman Powell for another 4-year term while the Build Back Better Act, a social policy bill backed by the president, passed the House and heads to the Senate . While 10-year Treasury yields started November on a weaker note, they have risen in recent weeks as concerns about rising inflation have grown and mortgage rates have followed suit. not. Powell’s reappointment is therefore likely to have a mixed impact, reassuring some investors who are confident in the Fed’s current approach while bolstering others who would prefer a more hawkish stance on recent price hikes.
What does that mean:
Going forward, homebuyers can expect a continued gradual increase in mortgage rates punctuated by occasional declines that will provide good opportunities to lock in a rate. While the number of homeowners looking to refinance will be fewer as rates rise, some will still be able to reduce their monthly payments through refinancing and anyone considering doing so should do so as soon as possible.
With homes continuing to sell quickly and at high prices, the number of homes available for sale is a limiting factor for many buyers and, paradoxically, can also be a limiting factor for sellers. With as much as 1 owner out of 4 chooses not to sell saying it’s because they can’t find a home in their price range, real estate market inventory issues are confusing potential buyers and sellers. However, an improvement could be on the horizon, with more owners plan to sell in the next 6 months and construction of single-family homes continues at more than a million dollars.