Mortgage Rates Just Fell To A Record New Low!

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) had the highest rate, averaging 2.86 percent, down from last week’s 3.16 percent. A year ago at this time, it averaged 3.39 percent.

Rates continue to sit at historic lows as investors watch COVID-19 vaccine progress and deliberations on a potential stimulus package in Congress, according to George Ratiu, realtor.com’s senior economist.

While low interest rates have been fuel for the blazing housing market in 2020, double-digit price gains over the past three months are now chipping away at affordability gains for Americans, according to Ratiu.

The National Association of Realtors (NAR) pending home sale index (a forward-looking indicator of home sale activity based on contract signings) fell 1.1 percent from September to October. And while contract signings were still up more than 20 percent year over year, the month-to-month decline shows signs that sales are slowing down.

On the economy in crisis, Ratiu said “Moreover, millions of people are staring at a wall of expiring support programs, such as the pandemic unemployment insurance and eviction protections, which dampen the brightness of the incoming holiday season. While we see a light at the end of the pandemic tunnel with upcoming vaccines, there is still a big question around whether Congress can come to terms on a new stimulus package to help the country recover from the current economic downturn.”