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Election Drops Mortgage Rates to 12th New Low This Year

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Economics

Election Drops Mortgage Rates to 12th New Low This Year


November 6, 2020
Person dropping ballot
Photo: vchalup

CNBC says the presidential election pushed mortgage rates even lower this week, breaking the 12th record this year. For the week ending November 5, 30-year fixed mortgage rates dropped to 2.78%. The week before, interest rates were 2.81%, but one year ago, rates were 3.69%. Due to the uncertain economic environment from the election, Realtor.com’s senior economist says bond investors went toward the safety of mortgage-backed securities. New lows are attracting homeowners to refinance their loans, with applications to refinance up 80% compared to last year.

For homebuyers, consistently low rates over the past several months, and the almost weekly prospect of rates falling even lower, have only fueled already strong demand. After a very brief pause at the start of the pandemic, buyers came rushing back, looking for a safe haven as well as larger spaces for working and schooling from home.

“With a rising second wave of COVID cases, the challenge of social distancing continues to drive peoples’ quest for a housing solution,” said Ratiu.

For the first time since 2011, homes sold faster in October than September and prices remained at their summer peak of $350,000, according to calculations by realtor.com, which included data from the National Association of Realtors.

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