Hardware Retailing The Industry's Source for Insights and Information
In November, the average mortgage rate dropped to its lowest rate in over a year, according to Freddie Mac and an Eye on Housing analysis from the National Association of Home Builders (NAHB).
The 30-year fixed-rate mortgage averaged 6.24% in November, 2 basis points (bps) lower than in October. Meanwhile, the 15-year rate increased 3 bps to 5.51%. Both rates remain lower than one year ago, dropping by 57 bps and 52 bps year over year, respectively.
The 10-year Treasury yield averaged 4.09% in November, a 3-basis pint increase from October. The spread between the 30-year fixed mortgage rate and the 10-year Treasury yield remains elevated at 215 basis points, above the 150-180 bps seen in a stable market, signaling ongoing market uncertainty.
These falling rates have impacted housing activity. Mortgage application activity continues to grow, led by increases in adjustable-rate mortgages and refinancing applications. Existing home sales also rose to an eight-month high in October.
