Main Content

Mortgage rates fall to record new low as home sales begin to sputter

The average rate for a 30-year, fixed-rate mortgage fell to 2.71%, the lowest number ever recorded by Freddie Mac’s weekly survey of rates, which dates back to 1971
The average rate for a 30-year, fixed-rate mortgage once again hit a new all-time low, clocking in at 2.71 percent, according to data released Thursday by Freddie Mac. But even with a new historic low for the 14th time this year, Freddie Mac Chief Economist Sam Khater believes home sales are hitting a wall.

“While homebuyer appetite remains robust, the scarce inventory has effectively put a limit on how much higher sales can increase,” Khater said, in a statement. “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.”

The average rate for a 30-year, fixed-rate mortgage fell to 2.71 percent, the lowest number ever recorded by Freddie Mac’s weekly survey of rates, which dates back to 1971. This time last year, the average rate for a 30-year, fixed-rate mortgage was 3.68 percent.

The 15-year fixed-rate mortgage meanwhile average 2.28 percent, down from last week’s 2.28 percent average and below the 3.14 percent average for the same week in 2019.

“Moreover, millions of people are staring at a wall of expiring support programs, such as the pandemic unemployment insurance and eviction protections, which dampen the brightness of the incoming holiday season,” Ratiu added. “While we see a light at the end of the pandemic tunnel with upcoming vaccines, there is still a big question around whether Congress can come to terms on a new stimulus package to help the country recover from the current economic downturn.”