- The average U.S. 30-year fixed mortgage rate fell to 2.81% from 2.87%, the lowest in Freddie M data data nearly 50 years back.
- This year’s reading also lowers the 10th record, reflecting borrowing costs that have boosted the housing market.
- The epidemic has boosted sales of new and existing homes, but rising prices have slowed the boom and may delay home ownership for some Americans.
- “It’s important to remember that not everyone is able to take advantage of lower rates because of the effects of the epidemic,” said Sam Khattar, chief economist at Freddie M. Import.
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Mortgage rates hit a record high for the 10th time this year.
The average 30-year fixed mortgage rate fell to 2.81% from 2.87% last week, Freddie Mac said in a release released Thursday. Data reading is the lowest in almost every decade. The last record low in early September was 2.86%.
The line of new mortgage-rate loans is not likely to close any time soon. The Federal Reserve indicated in September that its benchmark interest rate would likely remain close to zero by 2024, which would limit the rise in home loan rates.
read more: 200-plus money managers pay thousands to see what stocks are on Jim Usman’s buying list. It looks at details 2 and the one in which at least 50% is left to grow.
The housing market has risen despite widespread economic volatility in historically low borrowing costs. Sales of new homes have picked up, so much so that supply is only 3.3 months left, if the pace remains stable. According to the Census Bureau, the data back in 1963 is short-lived.
Current home sales are trending the same way. Although the housing market represents a bright spot in the struggling U.S. economy, a shortage of supplies has pushed up prices and could soon force some to delay homeownership.
“Many people are financing because refinancing activity remains strong,” Sam Khattar, chief economist at Freddie M’s, said in the release. However, it is important to remember that not all people can take advantage of low rates given the effects of the epidemic.
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