Mortgage rates forecast

Mortgage rates dropped a basis point this week, reaching the lowest level since Freddie Mac started tracking this data, even though yields on the benchmark 10-year Treasury increased 7 basis points.

Mortgage rates remained unchanged at their record lows heading into the Thanksgiving holiday, as investors reacted to a growing resurgence in coronavirus cases.

The Mortgage Bankers Association sees rates rising over the next two years, while Fannie Mae expects the average to remain under 3%.

Rates could be 50 basis points steeper than the MBA’s current projections, which anticipate the 30-year mortgage will average 3.3% next year, up from nearly 3% this year.

Mortgage rates moved off of their all-time low this week as a result of reports that Pfizer's coronavirus vaccine was potentially 90% effective, according to Freddie Mac.

With the 10-year Treasury yield getting a boost due to Pfizer’s COVID-19 vaccine news this week, KBW predicts insurers and title underwriters will fare best as recovery continues.

Mortgage rates are currently the lowest in the history of Freddie Mac’s survey, but sharp differences of opinion persist on whether that will make this a $4-trillion year or not.

Mortgage rates remained relatively flat this week, helping housing to stay as one of the bright spots in the U.S. economy during the current uncertainty, according to Freddie Mac.

Mortgage rates fell this week to another record low, and are now over a full percentage point below where they were five years ago, according to Freddie Mac.

But an expected drop in refinancings as mortgage rates rise should more than cancel that out, resulting in declining overall volume through 2023.