Chappaqua

Higher mortgage rates slow real estate purchases | Chappaqua Real Estate

Information compiled by Freddie Mac shows that mortgage rates continued to increase in the fall. The 30-year FRM – Commitment rate, inched up by four basis points to 4.87 percent from 4.83 percent in October. With the November increase, the 30-year FRM – Commitment rate, was at the highest level since February 2011. As a result of rising home costs, builder confidence in the market for newly-built single-family homes fell four points to 56 in December and affordability was at the lowest level in a decade.

The Federal Housing Finance Agency reported that the contract rate for newly-built homes, inched up 10 basis points to 4.77 percent in November. Mortgage rates on purchases of newly built homes (MIRS) increased by 11 basis points over the month of November to 4.86 percent.

After increasing the federal funds rate to 2.25 percent to 2.50 percent at the December Federal Open Market Committee meeting, the Fed remains cautiously on track to continue its gradual approach to raising interest rates with one or two possible rate hikes in 2019.

Moreover, the 10-year Treasury rate fell from above 3.21% at the start of November to 2.7% at the start of January. This decline will reduce mortgage interest rates. The average market rate, according to Freddie Mac, was 4.51% at the start of January.

read more…

http://eyeonhousing.org/2019/01/november-30-year-mortgage-rate-data/

This post was last modified on %s = human-readable time difference 10:06 am

Robert Paul

Robert is a realtor in Bedford NY. He has been successfully working with buyers and sellers for years. His local area of expertise includes Bedford, Pound Ridge, Armonk, Lewisboro, Chappaqua and Katonah. When you have a local real estate question please call 914-325-5758.

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