Home loan rates edged lower last week but have inched higher this week and remain at historically attractive levels. The Mortgage Bankers Association (MBA) reports that the 30-year fixed-rate mortgage fell seven basis points to 3.98% in the week ending November 1, 2019. That rate does carry 0.37 in points. The Market Composite Index, a measure of total mortgage loan application volume, was near unchanged. The Refinance Index rose 2% while the Purchase Index fell 3%. The survey covers over 75% of all US retail residential mortgage applications and has been conducted weekly since 1990.
TransUnion reports that the housing sector could receive a boost by first-time homebuyers in the next three years. A new report projects that at least 8.3 million first-time homebuyers will enter the mortgage market between 2020 and 2022. That number could rise as high as 9.2 million if economic growth exceeds expectations. Joe Mellman, senior vice president and mortgage business leader at TransUnion said, "We are optimistic that first-time homebuyers will contribute more to homeownership than at any time since the start of the Great Recession.”