U.S. Mortgage Rates Fall to a Record Low for 13th Time This Year

Mortgage rates in the U.S. have hit another record low.

The average for a 30-year, fixed loan tumbled to 2.72%, down from 2.84% last week and the lowest in data going back almost 50 years, Freddie Mac said in a statement Thursday. It was the 13th record low this year. The previous one, 2.78%, held for two weeks.

Americans are racing to scoop up homes, taking advantage of 30-year loan costs that have been below 3% since July. While the boom is a key source of strength for the pandemic economy, demand is far outstripping supply, sparking bidding wars and pricing many would-be buyers out of the market.

Weaker retail sales data released this week helped push down yields for the Treasury bonds that guide mortgages, suggesting consumers are becoming more hesitant amid a resurgence of Covid-19 cases and lack of a fresh federal stimulus package.

“While economic growth remains unstable, strong housing demand continues to have a domino effect on many other segments of the economy,” Sam Khater, Freddie Mac’s chief economist, said in the statement.

©2020 Bloomberg L.P.

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