Nineteen years since the fateful day the Twin Towers fell, America remembers and mourns the loved and lost. That day remains a pivotal turning point for the U.S. in many ways and a demonstration of the resilience of the American spirit. Monetary policy, the economy and the housing market all experienced a lasting change that continues to this day.
In the weeks and months following the attacks on the World Trade Center, the Federal Reserve began lowering short-term interest rates drastically in an effort to combat a recession and a decline in housing market activity. We see a similar pattern today, with the Fed making moves over the last couple of years to keep rates low to stimulate the economy.
The coronavirus pandemic has shaken U.S. markets in ways not seen since 9/11 and in a plethora of new ways as well. But as was seen in the aftermath of the terrorist attacks, America is seeing a rebounding from the downturn caused by the pandemic. Homeowners are experiencing new highs in their property values and buyers are reaping the benefits of mortgage rates being near all-time lows.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.5 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.