Eye On Housing
For the second consecutive month, information compiled by Freddie Mac shows that mortgage rates increased slightly on a year-over-year basis. As of end of November 2019, the 30-year FRM – Commitment rate, increased by one basis points to 3.70 percent from 3.69 percent in October. The cycle peak was 4.87 percent in November.
The Federal Reserve maintained the benchmark interest rate in November, at the range of 1.50-1.75 percent. Outlook expressed by FOMC members noted that the current stance of policy would remain appropriate so long as incoming information on the economy was consistent with the outlook. This is in line with NAHB forecast that this would be the last rate cut for 2019.
At the end of October, the 10-year Treasury rate, was at 1.83 percent. It was at 1.69 percent at the end of October. Although up slightly compared to a few weeks ago, the lower rate 10-year Treasury rate has contributed to lower mortgage interest rates in the last few weeks compared to earlier this year. The average 30-Year Fixed market rate, according to Freddie Mac, was at 3.68 percent at the end of November compared to 3.78 percent at the end of September. At the beginning of 2019, the average 30-Year Fixed market rate was 4.51 percent.
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