U.S. mortgage rates fell to a record low for the 14th time this year.
The average for a 30-year, fixed loan dropped this week to 2.71%, the lowest in data going back to 1971, Freddie Mac said in a statement Thursday. The previous record, 2.72%, held for two weeks.
Rates have been tumbling since March, fueling a homebuying boom and enabling current owners to save money by refinancing into cheaper loans. That’s made real estate a bright spot in the economy while other sectors have struggled to gain traction amid the pandemic.
The Federal Reserve’s plan to hold its benchmark rate near zero should keep a lid on mortgage costs for the foreseeable future. Still, the intense demand for a tight supply of homes has driven up prices, shutting some would-be buyers out of the market and threatening to slow the momentum of the housing rally.
