US long-term mortgage rates rise; 30-year fixed home loan hovers at 2.84%



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US long-term mortgage rates rise; 30-year fixed home loan hovers at 2.84%

On Thursday, in the first US housing data following last week’s US presidential election that had witnessed a seismic shift among American voters and a win for the Democratic contestant Joe Biden, US mortgage buyer Freddie Mac said that the long-term mortgage rates on an average edged higher this week, nonetheless, US home loans had still been anchoring at a historically higher level amid US Fed’s dovish stance.

In point of fact, bolstering view that the US Federal Reserve would unlikely to change its current monetary policy to keep its benchmark interest rate at a near-zero level, US Fed Chair Jerome Powell was quoted saying in a ECB (European Central Bank) forum on Thursday that a nascent recovery of US economy had been threatened by uncertainties caused by the US election which in effect would delay a much-required US stimulus bill, while the Fed Chair had also acknowledged that the pace of economic growth had been declining.

US long-term mortgage rates edge higher, but fundamentals remain negative

On top of that, latest Freddie Mac data for US home loans came forth a day after the ECB had said in a statement that it had been expecting the US Central Bank to keep its interest rate at a near-zero level at least until September 2023, eventually dampening hopes of a decline in US home prices amid a steep lack of supply alongside an unyielding upsurge in demands.

Meanwhile, according to Freddie Mac data released late on Thursday, the average rate on the popular-most 30-year fixed home loans rose slightly to 2.84 per cent this week from an all-time low of 2.78 per cent, while on an annualized basis, the rate fell from an averaged 3.75 per cent recorded at the same time a year earlier.

Freddie Mac also reported that its 15-year fixed-rate mortgage had been inched higher to 2.34 per cent this week from a reading of 2.32 per cent logged last week.