Rates become more volatile during Thanksgiving week

During this holiday-shortened week, the 30-year fixed rate mortgage increased 1 basis point to 3.28% while the 15-year mortgage held steady at 2.65%.

current outlook:

Treasury yields are slowly absorbing the news of Powell’s renomination to Federal Reserve chair instead of the more dovish Fed Governor Lael Brainard. As a result, yields along with mortgage rates are on the upclimb. In other news, rent is on the rise (up 10% from last year) and it’s no wonder why as investors steadily take a bigger piece of the housing pie. In Q3 of 2021, investors represented 18.2% of purchases of U.S. homes, an increase of 7.0% from the year prior. This has led to a market fraught with competition. Also contributing to the heightened demand are Millennials who have hit their prime home-buying years. As one millennial buyer argued, buying a house makes more sense given today’s low interest rates and tax policies which make it so “you can almost always get more space with a mortgage than with the same amount in rent.” 

Rates become more volatile during Thanksgiving week

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