As we prepare to celebrate Thanksgiving, there’s good news for the real estate and mortgage markets: mortgage rates have decreased compared to last week. This midweek rate update comes a bit earlier than usual, as the holiday shifts schedules for markets and lenders alike. Let’s explore what caused this change, potential opportunities and what it means for buyers and sellers, and what to expect as we move past Thanksgiving into the final weeks of the year.
Mortgage Rates Decrease This Week
The slight dip in mortgage rates this week is a welcome change, fueled by easing inflation pressures and quieter trading in bond markets leading into the holiday. Economic data released earlier in the week showed signs of a cooling economy, prompting optimism among investors and softening rate trends. While markets are typically quieter during holiday weeks, this decrease gives buyers and homeowners an added reason to feel grateful.
What This Means for Buyers and Sellers
For buyers, lower mortgage rates can mean more affordable monthly payments and greater purchasing power. This presents an excellent opportunity for those who have been waiting for a favorable moment to enter the housing market.
Sellers, too, can benefit from this environment. With rates easing, buyers who were hesitant due to affordability concerns may now feel more confident moving forward. Highlighting your home’s appeal during this period could attract motivated buyers ready to make their move before the end of the year.
Looking Ahead to Next Week
As Thanksgiving passes and we head into the last weeks of 2024, the mortgage market’s direction will depend on several factors:
- Upcoming Economic Data: Reports on employment, consumer spending, and inflation will be key in determining whether rates hold steady or fluctuate.
- Holiday Season Slowdown: Historically, December tends to see a dip in housing activity, but motivated buyers looking to lock in lower rates could keep the market active.
- Federal Reserve’s Next Steps: The Fed’s stance on interest rates remains pivotal. While they’ve indicated a pause in hikes, any surprises in economic data could influence future moves.
Take Action Now
The current rate environment offers an opportunity to make progress toward your real estate goals. Whether you’re buying, selling, or refinancing, now is a great time to consult with a trusted mortgage professional. For realtors, this is the perfect chance to engage clients, highlight the benefits of today’s market conditions, and help them plan their next steps.
As you enjoy your Thanksgiving celebrations, take a moment to reflect on the opportunities this week’s rate movement brings. Whether you’re carving turkey or carving out your next big real estate deal, this holiday season is shaping up to be a promising time in the market. Happy Thanksgiving, and here’s to a bright end to 2024!
| Product | Rate | Last Week | Change |
| 30-year fixed | 6.25% | 6.375% | ↓ 0.125 |
| 15-year fixed | 5.375% | 5.49% | ↓ 0.115 |
| 30-year FHA | 5.625% | 5.74% | ↓ 0.115 |
| 30-year VA | 5.624% | 5.74% | ↓ 0.116 |
DISCLAIMER: ALL LOANS ARE SUBJECT TO CREDIT APPROVAL. INTEREST RATES ARE SUBJECT TO CHANGE DAILY AND WITHOUT NOTICE. CURRENT INTEREST RATES SHOWN ARE INDICATIVE OF MARKET CONDITIONS AND INDIVIDUAL QUALIFICATIONS AND WILL VARY UPON YOUR LOCK-IN PERIOD, LOAN TYPE, CREDIT SCORE, LOAN TO VALUE, PURPOSE, AND LENDING SOURCE.
DISCLAIMER: FOR NEW JERSEY PURPOSES, WE ARE NOT A LENDER AND CANNOT GUARANTEE THESE INTEREST RATES.
30-year fixed-rate mortgages
Presently, the 30-year fixed-rate mortgage sits at 6.25%, reflecting a drop of 12.5 basis points from the preceding week. Despite its interest rate being higher than that of the 15-year mortgage, the 30-year option is favored by many buyers for its advantage of providing more budget-friendly monthly payments.
15-year fixed-rate mortgages
The current interest rate for a 15-year fixed-rate mortgage is 5.375%, showcasing a decrease of 11.5 basis points from the week prior. Choosing a 15-year mortgage enables borrowers to pay back their loan repayment quicker compared to the 30-year option. While this leads to increased monthly payments, it substantially diminishes the total interest paid over the loan’s duration.
Use our free mortgage and amortization calculators to calculate your monthly payment, including insurance, taxes, and interest.
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