Oct 12

Mortgage Rates Dip Below 3%

Mortgage Rates Dip Below 3%

 

Home buyers have another shot at snagging mortgage rates under 3% this week. The 30-year fixed-rate mortgage fell to 2.99%, defying expectations that below 3% rates were now gone.

The Federal Reserve recently warned that it will soon begin tapering its bond purchases, which is expected to move rates up. The National Association of REALTORS® is predicting that the 30-year fixed-rate mortgage will average 3.5% by mid-2022.

But over recent weeks, mortgage rates have remained just above or just below 3%.

“Mortgage rates continue to hover at around 3% again this week due to rising economic and financial market uncertainties,” says Sam Khater, Freddie Mac’s chief economist. “Unfortunately, with the expectation that both mortgage rates and home prices will continue to rise, competition remains high and housing affordability is declining.”

Still, Nadia Evangelou, NAR’s senior economist and director of forecasting, writes on the association’s blog that even if mortgage rates do climb to 3.5%, that is still a historical low. Demand for housing is expected to remain robust. NAR is forecasting about 6 million existing homes to be sold in 2022, about the same as last year.

Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 6:

  • 30-year fixed-rate mortgages: averaged 2.99%, with an average 0.7 point, falling from last week’s 3.01% average. Last year at this time, 30-year rates averaged 2.87%.
  • 15-year fixed-rate mortgages: averaged 2.23%, with an average 0.7 point, dropping from last week’s 2.28% average. A year ago, 15-year rates averaged 2.37%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.52%, with an average 0.3 point, rising from last week’s 2.48% average. A year ago, 5-year ARMs averaged 2.89%.

Freddie Mac reports average commitment rates along with average points to reflect the total upfront cost of obtaining the mortgage.

Source:
Freddie Mac and “Instant Reaction: Mortgage Rates, October 7, 2021,” National Association of REALTORS® Economists’ Outlook blog (Oct. 7, 2021)
©National Association of REALTORS®
Reprinted with permission

admin

For all of your Real Estate needs, place yourself in the competent hands of a career Realtor who is a Philadelphia native and Delaware County resident. Skilled, smart and enthusiastic about his work and his life, Anthony DiDonato has the appealing combination of business sense and people skills gives him an edge in an industry that demands both.

Educated at Drexel University with a dual major in accounting and finance and minors in management and psychology Anthony DiDonato offers over 25 years of experience in the real estate industry. He has been a real estate investor since 1985 and a member of H.A.P.C.O. (Landlord Association). He became a licensed Realtor in 1992 and a member of the Local, Pennsylvania and National Associations of Realtors. Anthony DiDonato is also a member of the Computerized Multiple Listings, (MLS) and Internet Marketing Programs. In 1997 Anthony DiDonato became Century 21 All-Elite, Inc. Corporate Secretary.

Anthony DiDonato believes in taking his profession to the highest level of quality service. He is known for finding that “perfect” property in Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania for his buyers and helping his sellers prepare their properties so they sell quickly and efficiently.

When it comes time to negotiate the terms of a contract, Anthony DiDonato has the knowledge, experience, and professionalism applied to meeting – or exceeding – his clients’ expectations. His service to his clients is second to none. His honesty and integrity have been his claim to fame.

For Superior Real Estate Representation in the Delaware Valley, Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania… call Anthony DiDonato.