Mortgage rates took a slight breather this week as borrowing costs moved lower and offset last week’s uptick.
Still, the housing market is trying to adjust to rates that are much higher than a year ago. “While higher mortgage rates have led to a decline in home sales this year, the weakness has been concentrated in expensive segments versus entry-level and first-time buyer [segments], which remain firm throughout most of the rest of the country,” says Sam Khater, Freddie Mac’s chief economist. “Despite higher mortgage rates, the monthly mortgage payment remains affordable. For many buyers, the chronic lack of entry-level supply is a larger hurdle than higher mortgage rates because choices are limited and the inventory shortage has caused home prices to rise well above fundamentals.”
Freddie Mac reports the following national averages with mortgage rates for the week ending Nov. 1:
- 30-year fixed-rate mortgages: averaged 4.83 percent, with an average 0.5 point, dropping from last week’s 4.86 percent average. Last year at this time, 30-year rates averaged 3.94 percent.
- 15-year fixed-rate mortgages: averaged 4.23 percent, with an average 0.5 point, falling from last week’s 4.29 percent average. A year ago, 15-year rates averaged 3.27 percent.
- 5-year hybrid adjustable-rate mortgages: averaged 4.04 percent, with an average 0.3 point, down from last week’s 4.14 percent average. A year ago, 5-year ARMs averaged 3.23 percent.
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