The month of October recorded a decline in mortgage rates, according to the Federal Housing Finance Agency (FHFA). That decline was not a reduction of new home rates or conventional mortgages, which actually increased. Loans on existing homes acted as a motivator for the decline and revealed that there has been a rate plateau since the summer’s figures. Initial fees on mortgages have increased in October to the highest they have been since July. Furthermore, September’s decline in the average price of new homes purchased with conventional mortgages was reversed in October, resulting in an average loan-to-price ratio falling to a low not seen since March.
Read the full article here: Interest Rates on New Home Loans Remain Stubborn