Mortgage News for September 25th, 2020

Mortgage Rates Continue to Break Record Lows

While economic data for the U.S. was mixed last week, a continued slide in U.S tech stocks weighed on Treasury yields, sending mortgage rates south. This spurred fixed rates of 30-year mortgages to slide by 7 basis points to a new low of 2.86%, which reversed a 2 basis point rise to 2.93% in the week prior. Compared to this time last year, 30-year fixed rates were down by 70 basis points, and from the most recent peak in November of 2018 at 4.94%, they're down 208 basis points.²

How Much Longer Will Sellers Call the Shots?

All summer long, the housing market prices rose and inventory vanished almost as fast as it appeared with a "for sale" sign. However, 2 housing market indicators may be hinting at a turn in the market. In September, housing demand from buyers cooled slightly, while new listings showed a smaller decline than previous weeks. If these trends continue, it could be a signal that political, economic, and health-related uncertainties the country is facing this fall are shifting the market dynamics.³

Improve Your Credit Score to Get the Best Rates

A credit score over 700 is generally considered good and positions borrowers for the best mortgage rates. If you want to improve your credit score before applying for a mortgage, Experian recommends paying all your bills on time including credits cards, auto or student loans, rent, utilities, etc.; paying off debt and keeping low balances on credit cards; avoiding opening up credit accounts you don't need; not closing unused credit cards or applying for too much new credit; and disputing any inaccuracies on your credit report.⁴

Sources: ²Yahoo Finance, ³Realtor Magazine, ⁴Experian