A Dip in Rates?

Odds are that the conversation around your Thanksgiving dinner table didn’t revolve around the volatile state of mortgage interest rates. Although, if you’re currently trying to buy OR sell a home, perhaps it did. After all, mortgage rates have been nothing but consistent over the past few years and that just so happens to make for GREAT conversation (in our opinion). So, what’s new with interest rates this week? 

Mortgage rates hit a generational high- compared to the past 20 years- in October when they topped 7%. Even though the saying goes, “what goes up must come down,” there’s no official timeline on what that means. Certainly a 7% rate could still increase, although this week did see a roller coaster dip. 

In the week ending Nov. 23, rates fell for the second time. Now, rates for a traditional 30-year mortgage are sitting at 6.58%, a full half a percentage point lower than our most recent high. 

What does this mean? 

Well, it means there’s just enough of a break to bring some buyers back to the market. Half a percentage point spells out a break of up to hundreds of dollars in savings each month on your mortgage payment and potentially tens of thousands of dollars in interest over the life of the loan. With home prices higher than they’ve ever been, this spells huge savings. It’s why every base point matters. 

As such, according to the Mortgage Bankers Association, applications for mortgages have risen each of these past two weeks that the rates have dipped. Home buyers are pretty well trained at this point to keep their eyes on the prize… even if it feels like that prize exists in a pinball machine. And the machine is on fire. 

For more information on current mortgage rates and predictions, visit Realtor.com.