Mortgage Rates Reversed October Downtrend

Mortgage rates reversed their recent downward trend in October, returning to two-month-ago levels.

According to Freddie Mac, the average 30-year fixed-rate mortgage rate climbed by 25 basis points (bps) from September to 6.43%.

The 15-year fixed-rate mortgage witnessed an even greater spike of 34 basis points to 5.60%.

These gains coincided with increased volatility in the 10-year Treasury yield, which rose 38 basis points throughout the month, from 3.72% in September to 3.99%.

This increase follows a weaker-than-expected labor report due to disruptions caused by two storms, the Boeing strike, and the 2024 election.

However, the majority of the increase in interest rates is due to rising post-election concerns over budget deficits.

NAHB will revise its interest rate forecast as the final election results are announced and the fiscal policy position becomes clear.

Nonetheless, long-term interest rates have risen since September due to election results.

[Read more about this topic on Eyeonhousing.org]