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Low Mortgage Rates Are Bringing Buyers To The Real Estate Market
Mortgage rates are at a historical low. Some lenders are even offering loans at less than 1% APR. The rates are the lowest they have been since this winter, and are scheduled to remain this low for at least the next month. Many people cannot afford to buy in the current market, but they are still taking advantage of the interest rate drop by refinancing. The availability of low interest mortgages is also fueling a surge in new home purchases and first-time home buyers.
30 Year Fixed Mortgage Rate
|Today’s Mortgage Rate||2.772%|
|Change From Yesterday||-0.049|
|Change From One Week Ago||-0.102|
|Change From One Year Ago||-0.27|
15 Year Fixed Mortgage Rate
|Today’s Mortgage Rate||2.125%|
|Change From Yesterday||-0.042|
|Change From One Week Ago||-0.139|
|Change From One Year Ago||-0.518|
Today’s Financial Headlines
Fannie Mae took a hit during the pandemic, when it had to swallow the losses associated with placing millions of Americans in mortgage forbearance programs. More than half of those mortgages are out of forbearance now, and new lending is driving up profits. The last two quarters have shown growth, and the trend is expected to continue.
Some economist say that there will not be a housing bubble as the result of current high real estate prices. Instead, they predict that market will flatten when the mortgage interest rates rise in 2022 or early 2023. The housing supply chain is not predicted to recover for several years, which will slow the market correction.
Many home owners are finally ready to exit their mortgage forbearance program and begin making payments again. However, their banks are hitting them with heavy charges. Many mortgage holders are seeing their payments triple. This is because the banks are pushing for the deferred payments to be made up as quickly as possible. This is against the federal forbearance program guidelines, which states that the missed payments should be added to the end of the loan and the lifespan of the loan to be extended.