Freddie Mac will release its latest Primary Mortgage Market Survey on Thursday, November 14, after the GSE announced the first drop in rates in three weeks.
The average rate for a 30-year fixed-rate mortgage fell to 3.69% after three-consecutive weeks of increases. The average rate last week was 3.78%.
“After a year-long slide, mortgage rates hit a cycle low in September 2019 and have risen in six out of the last nine weeks due to modestly better economic data and trade-related optimism,” said Sam Khater, Freddie Mac’s Chief Economist. “The improvement in sentiment has been one of the main drivers behind the surge in equity prices and will provide a halo effect to consumer spending heading
into the important holiday shopping season.”
The 15-year fixed-rate mortgage averaged 3.13%, which is a marginal decline from the prior week’s 3.19%. The 15-year fixed-rate mortgage was 4.33% a year ago.
Fannie Mae also announced that it's Home Purchase Sentiment Index fell 2.7 points in October, and five of the six HPSI components fell from the prior month.
The net share of those who say it is a good time to buy fell 7-percentage-points to 21%. Additionally, those believing it is a good time to sell fell to 41%.
“Consumer home purchase sentiment remains robust, with the HPSI still near its survey high despite dipping for a second consecutive month,” said Doug Duncan, SVP and Chief Economist, Fannie Mae. “The ‘good time to buy’ component has declined notably, despite low mortgage rates, due in part to the persistent challenge of a lack of affordable housing supply. In turn, the net share of consumers expecting home prices to increase over the next 12 months has fallen to its lowest reading in seven years. Still, low mortgage rates and a strong labor market are supporting the index’s overall strength, which is consistent with our expectation for a modest expansion in home purchase activity in the fourth quarter.”
Here's what else is happening in The Week Ahead:
CoreLogic Loan Insights Report (November 12)
New York Fed Household Debt and Credit Report (November 13)
Jerome Powell Testimony: The Economic Outlook (November 13)
U.S. Federal Budget (November 13)