In a further continuing decline, albeit just a notch, of reported 30 year mortgage rates to 4.62 percent by Freddie Mac, the home mortgage loan market continues to show a bit of weakness in what is typically considered a slow seasonal time. So this slight rate decrease was not what one would call surprising. The bigger question is whether home buyers have used the last few weeks weakness to lock in mortgages for end of year home purchases.
Yesterday, the Federal Reserve did announce a quarter percent increase in its Fed Funds Rate, which is its short term borrowing benchmark. This did cause a slight increase on 10 year treasury yields which as of the time of this article being written stands at 7.765 percent, less than this time last week.
All in all, with the end of year fast approaching and only one more reporting week left for the 30 year mortgage rate, no substantial move is expected to be reported.
In light of decreasing interest rates, geopolitical concerns, and even the anticipation of the Federal Reserve on the Federal Funds Rate, Freddie Mac has reported another weekly decline in 30 year mortgage rates to 4.63 percent.
If this trend continues, 30 year mortgage rates will not likely have risen the full percentage point as projected from the start of the year to the end of 2018.
This short term reduction, alongside a typical seasonal slowdown in housing sales might just stimulate some buying activity, “if” buyers are paying attention and “also if” they are able to find a desirable home. The ladder of these issues might be the hardest part. Though active listings have been trending up in most metropolitan areas they still, for the most part, are well under levels that qualify as a buyers market with multiple properties available and long days on market trends.
As it should be noted, since last week the ten year treasury yield has risen from around 2.83% this time last week to 2.90% as of the time of writing. This uptick may show a slight increase in 30 year mortgage rates for next week.