The average U.S. mortgage rate for a 30-year fixed loan fell one basis point this week to 2.71%, Freddie Mac said in a report on Thursday – the lowest rate in the survey’s near 50-year history. This week’s rate broke the previous record set on Nov. 19.
The average fixed rate for a 15-year mortgage also fell last week to 2.26% from 2.28%.
With this week’s record drop, there have now been 18 consecutive weeks when average mortgage rates have been below 3%. This also marks the third time in the survey’s history that rates have fallen below 2.75%, and the 14th time this year rates have broken their own record.
According to Sam Khater, Freddie Mac’s chief economist, despite these persistently low mortgage rates, home sales are facing significant challenges.
“While homebuyer appetite remains robust, the scarce inventory has effectively put a limit on how much higher sales can increase. Unfortunately, the record low supply combined with strong demand means home prices are rapidly escalating and eroding the benefits of the low mortgage rate environment,” Khater said.
Find more information here: https://www.housingwire.com/articles/mortgage-rates-fall-to-new-record-low-at-2-71/