Mortgage rates have continued to stay consistent the past few days, even after their worst performance in over two years last Thursday. Since last week, rates have recovered some ground, but have tapered off into a consistent trend. Most lenders are quoting at the still elevated mortgage rate of 4.0% for conventional 30 year loans.
October and the first half of November produced low rates, so compared with the current 4.0%, that’s a large increase. Rates in 2015 have capped around 4.125% – 4.25% while the lowest rates were in the 3.625% – 3.875% range. Next week’s Fed Announcement will likely increase short term rates and will be a large factor on which end of the spectrum we’ll finish 2015 on.
Mortgage rates have been all over the place in 2015. From long-term lows due to the quantitative easing in Europe to the worst day in two years last Thursday. The Fed has been on a mission since early this year to broadcast a rate hike, but have hit major roadblocks all year. As October hit a 6-month low in rates, the Fed changed their policy to suggest December as the month of the rate hike. Keep in mind that this hasn’t been done since 1999.
Overall, mortgage rates are at a crossroads. Fluctuating all year, sometimes to the extreme. Next week’s Fed Announcement will have a huge factor on the rates finally stabilizing (maybe to an even higher rate) or to continue their long campaign.