Currently Reading

Mortgage Rates Hit New Bottom for 10th Time

Advertisement
Economics

Mortgage Rates Hit New Bottom for 10th Time


October 16, 2020
Dropping percentages
Photo: sewcream

For the 10th time this year, mortgage rates dropped to record lows. When will it stop? That’s up to the economy’s recovery, says Realtor.com. The average rate for a 30-year fixed-rate mortgage dropped down to 2.81% this week. But the market has been hot for months, and home prices have only increased. Yes, lower mortgage rates help a bit, but Realtor.com’s chief economist says although home prices are higher, most homeowners are indeed paying less for their mortgages, but only by about $80 a year. The chief economist also predicts mortgage rate normalization, or any sort of significant gains, will not be seen until next year and could drop even further.

The median home list price shot up 12.2% over last year in the week ending Oct. 10, according to realtor.com® data. That's due to a historic lack of homes for sale—inventory was down 38% compared with the same week last year—and a crush of buyers ratcheting up the competition.

After being stuck at home for months because of COVID-19, many folks want bigger homes with more land. In many markets, well-priced homes are going off the market within hours of receiving multiple offers over asking price.

Read More

Related Stories

Market Data + Trends

Case-Shiller: September Home Prices Break 6-Year High

Realtor.com warns that prospective homebuyers may not find a better deal in the future as home prices continue their climb. According to the S…

Economics

As Mortgage Rates Lower, Millions of Americans Can Save Big

With mortgage rates down to a new low, a record 19.4 million Americans could save hundreds per month. The average interest rate for Freddie Mac’s…

Market Data + Trends

Mortgage Demand Increases for First Time This Month

After a brief pause for the presidential election, mortgage applications are now back to booming. For the week, mortgage applications to purchase…

Advertisement

More in Category




Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.