It’s been some time since I posted a blog, I’ve been asked so many questions about the market, it’s time I share my data and thoughts.
Mortgage rates for the seventh week in a row were 2.9% or lower.
Nadia Evangelou, a senior economist and director of forecasting for the National Association of REALTORS, suggests that home buying will have returned to a more regular seasonal trend of cooling off.
She noted that both buyers and sellers dislike moving their families while school is in session, they prefer to wait until the end of the year when they have more free time for the relocation.
Between August and September, she predicted that sales would fall by 15 percent.
It’s usual to see the market cooling off in the coming months, even at record low rates.
According to NAR, total house sales are expected to decrease by 10% in the last quarter of this year.
Mortgage demand has dropped to the two-month low.
According to Freddie Mac’s chief economist, “Even as the economy expands, it has lost speed since the recent wave of new COVID cases has resulted to worse employment, fewer spending, and a drop in consumer confidence.”
In addition, because of increasing supply and demand imbalances, mortgage rates have remained stable despite increases in inflation.
These low and consistent mortgage rates provide consumers more time to search for homes.
The following nationwide averages for mortgage rates were reported by Freddie Mac during the week ending September 9:
30-year fixed-rate mortgages had an average interest rate of 2.88%, with an average one-tenth of a point (0.7%). This significantly increased from the previous week’s average of 2.87%.
Just one year ago, 30-year interest rates averaged 2.86%.
A 15-year fixed-rate mortgage had an average interest rate of 2.19%, with an average 0.6 point.
A year ago, fifteen-year interest rates averaged two and one-half percent.
2.42% average 5-year hybrid adjustable-rate mortgages: down from last week’s 2.43% by 0.3 points.
Five-year adjustable-rate mortgages (ARMs) averaged 3.11% one year ago.
Freddie Mac reports average commitment rates along with average points to better reflect the total upfront cost of obtaining the mortgage.
Source: Freddie Mac and “Instant Reaction: Mortgage Rates, September 9, 2021,” National Association of REALTORS® (Sept. 9, 2021