The average 30-year fixed mortgage rate fell to 3.79 percent this week, up from 3.81 percent last week, and that’s the lowest the level since the week of Oct. 29, 2015.
Last month’s turnaround from a weak November is the largest monthly increase ever recorded, the NAR says. Sales are now 7.7 percent above a year ago.
The weakness in the stock market, which has led to a flight to Treasuries over the past few days, has helped bring down the average rate on the 30-year fixed mortgage to 3.81 percent
That much-studied and targeted group of Americans known as Millennials, born between the early 1980s and mid-1990s, are big users of Alternative Financial Services (AFS).
It didn’t take long for the Federal Reserve’s short-term interest rate hike of a quarter of a percent to have an impact on the wallets of many U.S. consumers.
The Federal Reserve’s first interest-rate hike in nine years is already fueling higher home-loan costs as the housing market struggles with tight supplies and prices too high for many first-time buyers.
It’s becoming increasingly clear that the recovering housing market is facing some headwinds, including home prices outpacing income growth in some areas and tight supplies.
In one way or another, sooner or later, the Fed’s rate hike, although only a quarter of a percent for now, will affect most U.S. consumers who borrow money.
The long-anticipated move by the Federal Reserve to raise its benchmark interest rate this week could have the biggest — and quickest — impact on credit card borrowers, especially those carrying large balances.
Sales of previously owned homes, or resales, slumped in October, despite average mortgage rates staying below 4 percent for the third straight month, according to the National Association of Realtors.