Mortgage rates in the U.S. started 2021 by setting another record low.
The average for a 30-year, fixed loan fell to 2.65%, down from 2.67% last week and the lowest in data going back 50 years, Freddie Mac said in a statement Thursday. It was the 17th record low since the coronavirus started roiling financial markets last March.
Low borrowing costs -- down more than a percentage point from a year earlier -- have fueled a pandemic housing boom that has pushed the country toward an affordability crisis as home prices rise swiftly and listings grow ever more scarce. Mortgage rates are poised to rise modestly this year, said Sam Khater, Freddie Mac’s chief economist, potentially threatening the rally.
Home prices “have been on an unsustainable rise -- that’s not something you can repeat year after year because income’s not rising that quickly,” Keith Gumbinger, vice president at mortgage-information company HSH.com, said in an interview.
