Mortgage rates remained unchanged at their record lows heading into the Thanksgiving holiday, as investors reacted to a growing resurgence in coronavirus cases.
Another factor in both rates and mortgage-backed securities yields remaining at record lows in recent days was quantitative easing purchases made by the Federal Reserve, a Nov. 23 note from Optimal Blue said.
“Until these quantitative measures are rolled back and the COVID recovery path becomes clearer, the yields on MBS and mortgage rates will likely be materially insulated from other market factors that would otherwise drive rates higher,” Optimal Blue said.
The 30-year fixed-rate mortgage averaged 2.72% for the week ending Nov. 25, unchanged from last week, according to the Freddie Mac Primary Mortgage Market Survey. A year ago at this time, the 30-year fixed-rate mortgage averaged 3.68%.
“Mortgage rates remain at record lows and while that has fueled a refinance boom, it’s been driven mainly by higher income borrowers. With about 20 million borrowers eligible to refinance, lower- and middle-income borrowers are leaving money on the table by not taking advantage of low rates,” Sam Khater, Freddie Mac’s chief economist, said in a press release.
“On the home buying side, demand continues to surge, and it has created a seller’s market where inventory is at a record low and home prices are rising, beginning to offset the benefits of the low rates.”
The 15-year fixed-rate mortgage averaged 2.28%, unchanged from last week. A year ago at this time, the 15-year fixed-rate mortgage averaged 3.15%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.16% with an average 0.3 point, up from last week when it averaged 2.85%. A year ago at this time, the five-year adjustable-rate mortgage averaged 3.43%.
