U.S. Mortgage Rates Drop to Record Low for 15th Time This Year

Mortgage rates hit another record low.

The average for a 30-year, fixed loan slipped to 2.67%, down from 2.71% last week and the lowest in data going back almost 50 years, Freddie Mac said in a statement on Thursday.

Mortgage rates, which started tumbling in March, have been below 3% since July. The lower borrowing costs have fueled a housing rally that has boosted the U.S. economy, with buyers jumping into the market and current owners saving money by refinancing into cheaper loans.

The Federal Reserve has kept a lid on interest rates and purchased mortgage bonds as part of its bid to stimulate the economy. That’s boosted the mortgage industry, which is having a record year.

Low inventory of homes to buy, and demand for properties in the suburbs, has helped prop up prices.

©2020 Bloomberg L.P.

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