It feels like a broken record… mortgage interest rates hit a record low… again!
According to data released by Freddie Mac, the average 30-year mortgage hit an all-time low of 2.65% this week, down nearly an entire percentage point compared to last year at this time. The 15-year fixed rate mortgage rate averaged 2.16%, down from last year’s average of 3.07%.
Sam Khater, Freddie Mac’s chief economist, stated “Despite a full percentage point decline in rates over the past year, housing affordability has decreased because these low rates have been offset by rising home prices.”
This means more potential buyers may be squeezed out this spring season if the inventory remains low, pushing prices even higher. Although rates are expected to stay low, plummeting rates may start to shift in 2021.
