- The average 30-year US fixed mortgage rate fell from 2.8% to 2.78%, marking the 12th record low this year.
- The rate isn’t the lowest in Freddie Mac’s data for nearly 50 years.
- Inexpensive loans have prompted a strong rally in housing during the coronavirus pandemic.
- “Despite the uncertainty we’ve all experienced this year, the housing market, driven by low rates, continues to be a point,” said Sam Khater, chief economist at Freddie Mac. shining”.
- Visit the Business Insider home page for more news.
Mortgage rates in the US hit a record low for the 12th time this year on Thursday.
The average interest rate for a 30-year fixed mortgage fell to 2.78%, the lowest level in Freddie Mac’s data in nearly 50 years. The previous rate was 2.8%, which was only kept for two weeks.
The Federal Reserve’s commitment to keeping interest rates close to zero means mortgage rates for homeowners and buyers are likely to stay low for quite some time.
Read more: The chief strategist at JPMorgan’s $ 2.3 trillion investment arm said the US election could resolve the stock market ‘polarization’ amid a marked political divide – and yes. 4 transactions that are likely to benefit
Inexpensive loans have fueled a strong housing rally in the beaten economy. New and existing home sales surged again after the pandemic stopped buying in March and April. In September, existing home sales rose to new 14-year highs. However, increased demand could start to outpace supply and push prices higher.
Sam Khater, Freddie Mac’s Chief Economist, said in a press release: “Mortgage rates hit another record low, the twelfth this year, due to economic and political ambiguity. “. “Despite the uncertainty we all went through this year, the housing market, driven by low rates, continues to be a bright spot.”