Mortgage rates stayed relatively unchanged again this week. In this case, no news is good news as rates remain at the lowest levels in over a year.
In fact, 30-year mortgage rates have essentially been in a holding pattern for the past month, stabilizing within a narrow 10-basis-point range. From Oct. 1 through Nov. 12, the government shutdown restricted the publishing of economic data releases on employment and inflation that move mortgage rates, keeping them relatively unchanged.
Now that the shutdown is over and federal agencies can resume data collection, mortgage rates are likely to be slightly more volatile in the coming weeks. But it’ll take some time for business to resume as usual, and it’s unclear how the news will impact the markets that influence mortgage pricing.
For one, the conflicting September jobs report, finally released after a monthlong delay, shows that the U.S. economy added more jobs than expected, despite unemployment nudging higher. Meanwhile, in an unprecedented move, the Bureau of Labor Statistics has cancelled the release of the consumer price index and employment reports for October.
For the time being, at least, those looking to buy a home or refinance their mortgages are in a good position to do so.
[SEE: Current Mortgage Refinance Rates]
Housing Market Gets an Off-Season Boost From Lower Rates
Home sales are usually strongest during the spring and summer months, when families with young children can move without disrupting school schedules. This year is proving to be an exception, with existing home sales actually picking up in September and October compared with May through August, according to the National Association of Realtors.
Sales of existing homes — that is, houses that are not newly constructed builds — increased 1.2% month-over-month and 1.7% year-over-year in October, bucking seasonal trends. That’s despite the fact that the federal government was shut down during the entire month, leaving some workers worried about their job stability and fueling greater economic uncertainty.
Still, it’s easy to understand the reasoning behind this shift. Homebuyers who dared enter the housing market during spooky season were rewarded with better affordability and increased inventory of homes to choose from.
[Read: Best Mortgage Refinance Lenders.]
Heather Long, chief economist at Navy Federal Credit Union, says that the real estate market is “waking up from a long slumber” thanks in part to consistently lower mortgage rates.
“Buyers have more options, lower rates and not much competition,” Long says. “This fall and likely this winter will be good times to buy for people who are able to afford the down payment.”
In other words, those who can take a break from their busy seasonal schedules to shop for a new home may receive the greatest gift of all: a home for the holidays.
More from U.S. News
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Over 4M Homeowners Could Refinance as Mortgage Rates Stabilize
Falling Mortgage Rates Are a Boon for Home Sales — NAR originally appeared on usnews.com
