The 30-year fixed mortgage held steady at a record low of 3.14 percent in Bankrate’s weekly survey. Mortgage rates, which are tied to the 10-year Treasury rate, have tumbled during the pandemic as a massive intervention by the Federal Reserve has pushed borrowing rates lower than ever before.
“10-year Treasury yields have remained steady all week, which should lead to little or no change in long-term mortgage rates,” said Ken H. Johnson, real estate economist at Florida Atlantic University.
Many experts expect mortgage rates to remain low for a long time to come. Reports emerged this week that the Federal Reserve may keep its federal funds rate at near zero for up to five years.
“I believe we will continue to see some inconsistency and small movement with regard to mortgage rates over the next few weeks with the hope that everything levels back out and we can determine a more realistic trend, although bonds indicate rates should be a bit lower,” said Jennifer Kouchissenior, vice president, real estate lending, VyStar Credit Union in Jacksonville, Florida.
Earlier this week, the Federal Housing Finance Agency announced that it would delay a 0.5 percent fee on new refinancings. Originally, the charge was set to go into effect on Sept. 1, but that has been pushed to Dec. 1 instead.
That move should help bring down refinance rates in the coming weeks.