Mortgage Rates Fall for First Time in Weeks

Mortgage Weekly Update

Mortgage rates dropped this week, with the average rate on 30-year loans hitting 3.09%. That’s down from 3.14% last week, according to Freddie Mac, and the first rate dip seen in weeks.

Despite the decrease, overall mortgage applications fell, slipping 3.3% compared to the week prior. According to the Mortgage Bankers Association, purchase loans were down 3% or the week, while refinances were down 4%.

“Purchase activity continues to be held back by high prices and low for-sale inventory, but current applications levels still point to healthy housing demand,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. 

On the refi front, rising mortgage rates (at least prior to this week) are keeping existing homeowners on the sidelines. Refinances are now 61.9% of all mortgage activity, down from 62.2% last week.

“Refinance applications declined to the lowest level since January 2020, and the overall share of activity fell to the lowest since July 2021,” Kan said. “Government refinance applications fell for the sixth straight week, as it becomes evident that an increasing number of borrowers have already refinanced.”  

More in mortgage & housing news

  • Freddie Mac has announced an initiative to help renters build up their credit. According to the company, it’s now encouraging multifamily operated to report on-time rent payments to all three major credit bureaus, which should give many renters a credit score boost by default.
  • Just 2.15% of all mortgage loans are currently on a forbearance plan, according to MBA. That’s down from 2.21% last week and amounts to just 1.1 million homeowners.
  • Redfin announced a record-breaking gain in affordable housing listings this week, with a 13% uptick over the year. These homes come with a median price of just $126,500.

This week in mortgage rates

Interest rates fell on all mortgage products this week, according to Freddie Mac.

Here’s how rates looked for each loan type:

Make sure to check back here next week for the latest mortgage rates and news.

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By Aly Yale / November 4th, 2021 / Categories: / Tags:

Aly Yale

Aly J. Yale is a freelance writer focusing on real estate, mortgage, and the housing market. Her work has been featured in Forbes, Bankrate, The Motley Fool, Business Insider, The Balance, and more. Prior to freelancing, she served as an editor and reporter for The Dallas Morning News. She graduated from Texas Christian University's Bob Schieffer College of Communication with a major in radio-TV-film and news-editorial journalism. Connect with her at AlyJYale.com or on Twitter at @AlyJwriter.