What a Biden presidency could mean for the housing market

We discuss David Stevens’ recent article that examines what the housing market could look like in a Biden administration.

Biden picks Janet Yellen to be next Treasury Secretary

The former head of Federal Reserve would be first woman to lead Treasury Department

Buying a home in a competitive market

We couldn’t be more thrilled about interviewing a real estate agent for the second episode of Girlfunds, a show where we give you our two cents on money.

Ushering in the future borrower experience

As Katherine Campbell drives toward a one-touch mortgage, she’s taking time to share what she has learned along the way.

Mortgage

Mortgage rates rise from record low to 2.84%

Positive news about a COVID-19 vaccine may be a factor

The average U.S. mortgage rate for a 30-year fixed loan rose this week to 2.84%, Freddie Mac said in a report on Thursday – up 6 basis points from the previous all-time record low set last week.

The average fixed rate for a 15-year mortgage also gained slightly by 2 basis points to 2.34%.

Despite this week’s rise, there have still been 16 consecutive weeks when average mortgage rates have been below 3%. However, this week’s slight gain was most likely a result of positive news about a COVID-19 vaccine, said Sam Khater, Freddie Mac’s chief economist.

“Despite this rise, mortgage rates remain about a percentage point below a year ago and the low rate environment is supportive of both purchase and refinance demand. Heading into late fall, the housing market continues to grow and buttress the economy,” Khater said.

In an effort to buffer economic blows, the Federal Reserve began buying bonds in March to make borrowing cheaper – eight months later and those rates are still feeding a frenzied market despite upward pressure on home prices.


Low mortgage rates fuel the demand for valuation and settlement services  

VRM Mortgage Services CEO shares how the company is navigating a difficult year, and how its services are impacted by the different national, state and local directives on foreclosure.

Presented by: VRM Mortgage Services

How long these low rates will last is still up for debate, but in September, 13 members of the Federal Reserve’s Federal Open Market Committee said they expect to keep the central bank’s benchmark rate near zero through 2023.

Fannie Mae’s Home Purchase Sentiment Index, a composite index designed to track the housing market and consumers’ desire to sell or buy a home, also revealed consumers and the industry alike are confident that a low rate environment will hold. Those who believe they will rise in the coming 12 months dropped to 32%, and 49% now believe they will stay the same – up from 44% in September.

Doug Duncan, Fannie Mae’s senior vice president and chief economist, noted much like the 2016 election, the 2020 election may have lasting and unexpected impacts on the market over the coming months. However, observers from across the housing and mortgage space said interest rates will continue to hover near historic lows for the next several years, regardless of who occupies the White House.

Leave a comment

Most Popular Articles

DOJ sues NAR for alleged antitrust violations

The DOJ filed a lawsuit against NAR on Thursday, alleging a series of violations of antitrust law, including commission arrangements and consumer disclosure requirements.

Nov 19, 2020 By

Latest Articles

2021 housing market forecast: It’s about politics, not economics

COVID-19 protections for households and support for financial markets are set to expire at the end of 2020. How will this impact the housing market in 2021?

Nov 23, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please