The mortgage market continues to show promising signs as we approach the end of the year. This week, mortgage rates trended lower once again, offering a brighter outlook for buyers, sellers, and those considering refinancing. Key economic data, including a jobs report that indicated a slight cooling in the labor market, contributed to the favorable shift.
Why Rates Are Trending Down
The Federal Reserve keeps a close eye on labor market conditions, inflation shifts, and economic activity when shaping monetary policy. This week’s jobs report revealed modest improvements in employment data, signaling reduced wage pressures and steady progress toward balancing the economy. These factors helped ease concerns in the bond market, leading to lower yields—and subsequently, lower mortgage rates. This is particularly good news for buyers and sellers alike:
- For Buyers: Lower rates improve affordability, potentially allowing buyers to stretch their budgets further.
- For Sellers: Declining rates encourage market activity, bringing more buyers into the mix.
What to Expect Next Week
As we look ahead, several factors could shape mortgage rates in the coming days:
- Upcoming Economic Reports: Key data on inflation and consumer spending, as well as the next jobs report, will offer additional clues about the Federal Reserve’s next moves.
- Seasonal Trends: Historically, rates tend to stabilize or dip slightly during the holiday season as market activity slows.
While there’s no crystal ball for predicting rates, the current trend provides a unique outlook and window of opportunity for buyers who’ve been on the sidelines and sellers seeking motivated buyers.
How to Stay Ahead
If you’re a real estate professional or homeowner, now is the time to engage your clients. Here’s how:
- For Buyers: Encourage them to get pre-approved and explore their options before rates shift.
- For Sellers: Highlight the increased activity in the market and the positive outlook as buyers look to lock in deals before the year ends.
The mortgage market is always evolving, but this week’s positive momentum reminds us that opportunities often arise when least expected. Whether you’re buying, selling, or simply exploring your options, staying informed is the key to success.
Product | Rate | Last Week | Change |
30-year fixed | 5.875% | 6.25% | ↓ 0.375 |
15-year fixed | 4.99% | 5.375% | ↓ 0.385 |
30-year FHA | 5.374% | 5.625% | ↓ 0.251 |
30-year VA | 5.374% | 5.624% | ↓ 0.25 |
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 5.875%, reflecting a drop of 37.5 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 4.99%, showcasing a decrease of 38.5 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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