Mortgage rates in US, November of 2024

As of November 16, 2024, mortgage rates in the United States have experienced slight fluctuations. The average rate for a 30-year fixed-rate mortgage has decreased marginally to 6.78% from 6.79% the previous week, marking the end of a six-week upward trend. In comparison, a year ago, this rate stood at 7.4%. Similarly, the average rate for 15-year fixed-rate mortgages, commonly used for refinancing, has dipped to 5.99% from 6% last week, down from 6.76% a year earlier. 

These mortgage rates are influenced by the yield on U.S. 10-year Treasury bonds, which have been rising due to positive economic and inflation reports. The yield on these bonds was 4.41% on Thursday, up from 3.62% in mid-September. Despite these fluctuations, the average mortgage rate has decreased from a peak of 7.22% in May and hit its lowest at 6.08% in late September. Economists expect mortgage rates to remain volatile but predict they will be around 6% in 2025. Persistent high mortgage rates and elevated home prices have contributed to a prolonged sales slump in the U.S. housing market since 2022. 

In the context of recent political developments, mortgage rates have shown resilience. Following Donald Trump's presidential victory and a Federal Reserve interest rate cut of 25 basis points, the average rate for a 30-year mortgage approached 7%. Despite this increase, mortgage applications rose slightly over the past week, with the Mortgage Bankers Association reporting a 0.5% rise in the market composite index compared to the previous week. This indicates that higher rates have not significantly deterred homebuyers. 

Overall, while mortgage rates have seen minor decreases recently, they remain elevated compared to historical standards, impacting affordability and activity in the housing market.