The colder weather can mean a real estate slow down, in which people are buying and selling less. Many wait for warmer months to plan their moves. It’s also a time of the year where mid-year financial reports start coming out and a particular volatile time for rates no matter what industry you’re talking about. While the holidays can slow down the movement a lot, it doesn’t mean much in the trend upward that we’ve been experiencing all year in mortgage rates. There’s 3 things you should know and keep in mind as we approach the holidays and the end of the year.
1.Holidays can mean a slower market
The holidays encourage a trend down in APR rates. While it isn’t a big change, the small reduction can mean a significant change in the overall money that you might pay in the long run on a mortgage. Much of the lower rates and stagnant change over the last week can be thanks to the holidays as those in the market like to make less adjustments over and after the Thanksgiving holidays.
2. Rates fell drastically
Mortgage rates fell November 28 at the fastest single-day pace in more than a year, reports mortgagenewsdaily.com. This improvement was due to a speech by Fed Chair Powell, in which he said rate hikes were coming to an end.
3. What does that mean for rates right now?
Rates are still high with the national average for a 30 yr fixed loan ranging from 4.875-5.0%.
Locally, this year so far has tended to range anywhere from .01 – .5 % points higher than the national average, but right now, it’s looking like local banks are more on trend with the national averages, at least for the moment.