Mortgage Rates Hit Lowest Level in Over a Year
The average mortgage rate continued to trend lower in November to its lowest level in over a year. According to , the 30-year fixed-rate mortgage averaged 6.24% in November — 2 basis points (bps) lower than in October. Meanwhile, the 15-year rate increased 3 bps to 5.51%.
Both the 30-year and 15-year rates remain lower than a year ago, dropping by 57 bps and 52 bps year over year, respectively.
Impact on Housing Market
Falling mortgage rates have shown some impact on housing activity. Mortgage application activity continues to strengthen, led by increases in adjustable-rate mortgages and refinancing applications. Additionally, existing home sales rose to an eight-month high in October. (Note: There is no data available for new home sales in October because of the government shutdown.)
Market Indicators
The 10-year Treasury yield — a key benchmark for long-term borrowing — averaged 4.09% in November, a 3-bps increase from October. This reflects a 215 bps spread between the 30-year fixed mortgage rate and the 10-year Treasury — an indication of ongoing market uncertainty, as the spread in a stable market is roughly 150 to 180 bps.
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