Realty World - Sierra PropertiesLicense #: 00319644

Realty World - Sierra PropertiesLicense #: 00319644

Experts: Rising Rates Won’t Deflate Buyer Demand

The 30-year fixed-rate mortgage moved up for the second consecutive week, averaging 3.09%, Freddie Mac reports.

“Mortgage rates continued to rise this week due to the trajectory of both the economy and the pandemic,” says Sam Khater, Freddie Mac’s chief economist. “Even as the availability of existing homes is improving, prices remain high due to home buyer demand and limitation on housing starts and permits resulting from the ongoing labor and material shortages.”

Housing demand will continue to be high, even as mortgage rates move higher. NAR is forecasting mortgage rates to average 3.3% for the last quarter of 2021.

Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 21:

*30-year fixed-rate mortgages: averaged 3.09%, with an average 0.7 point, rising from last week’s 3.05% average. Last year at this time, they averaged 2.80%.

15-year fixed-rate mortgages: averaged 2.33%, with an average 0.7 point, increasing from last week’s 2.30% average. A year ago, they averaged 2.33%.

Source: Freddie Mac and “Instant Reaction: Mortgage Rates, Oct. 21, 2021,” National Association of REALTORS® Economists’ Outlook blog (Oct. 21, 2021)

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