Rich Pedronselli / Associated Press
- The average 30-year U.S. fixed mortgage rate fell to 2.78% from 2.8%, the 12th record low this year.
- The rate is the lowest in almost every year in Freddie’s data.
- Cheap loans have sparked powerful housing rallies during the coronavirus epidemic.
- “Despite the uncertainty we’ve all experienced this year, the low-backed housing market is a bright spot,” said Sam Khattar, chief economist at Freddie M’s.
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U.S. The mortgage reached another record low every Thursday for the 12th time this year.
The average rate for a 30-year fixed mortgage fell to 2.78%, the lowest in Freddie Mac data nearly 50 years ago. The previous rate was 2.8%, which was only for two weeks.
The Federal Reserve’s pledge to keep interest rates close to zero means mortgage rates for homeowners and buyers are likely to remain low for some time.
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Cheap loans have given impetus to a powerful housing rally in an otherwise haunted economy. Sales of new and existing homes have soared since the epidemic halted purchases in March and April. In September, existing home sales soared to a new 14-year high. However, increased demand could push supply and push prices further.
“Mortgage rates have reached a record high for the twelfth time this year due to economic and political uncertainty,” Sam Khattar, chief economist at Freddie M’s, said in a press release. “Despite the uncertainty we’ve all experienced this year, the low-cost housing market has become a bright spot.”
