October 16, 2020 | Market Update

Market News 10-16-2020

Mortgage Market Update

30-year Mortgage Rates Inch Lower

One key lending rate went down in October – the national average for refinances of 30-year fixed-rate loans ticked downwards to 3.04%, but the average rate on a 15-year fixed mortgage nudged upwards to 2.6%. The average rate on 10-year fixed refinance loans also increased to 2.63%. While refinancing rates change daily, rates remain low overall compared to the period before the Great Recession.1

Know the Timeline for Buying a Home

The homebuying journey varies for everyone, but closing a mortgage typically takes 42 days. In just a few days, you can get a mortgage pre-approval and then use that information to guide your home search, which takes 10 weeks on average. Offers and negotiations can take one to three days, and once your offer is accepted, you can apply for a mortgage in under an hour. Your lender will need three to four weeks to process the loan, which includes appraisal, inspection, title search, and underwriting. After receiving the closing disclosure and conducting a final walk-through, you can sign on the dotted line and receive your keys on closing day.2

Women Continue to Fuel Housing Demand

After married couples, single women make up the largest group of homebuyers in America. Nationally, the share of homes bought by single women last year was almost 11% larger than that of single men. Better Mortgage, for example, reported that the number of single-women borrowers between 30 and 40 years old was 4.5 times higher in 2019 than it was the year prior.4

Sources: 1MSN, 2Better, 4Better