HOUSTON – (Realty News Report) – Mortgage rates dipped to record lows, providing support that should keep home sales humming.
The 30-year fixed-rate mortgage averaged 2.78 percent, according to the weekly Freddie Mac mortgage survey. It was the lowest rate in the history of the Freddie Mac survey, which dates back to 1971.
“Mortgage rates hit another record low, the twelfth time this year, due to economic and political ambiguity,” said Sam Khater, Freddie Mac’s Chief Economist. “Despite the uncertainty that we’ve all experienced this year, the housing market, buoyed by low rates, continues to be a bright spot.”
The 2.78 percent average for the week ending November 5, 2020, was down from last week when it averaged 2.81 percent. A year ago at this time, the 30-year mortgage averaged 3.69 percent
The 15-year mortgage averaged 2.32 percent, unchanged from last week, Freddie Mac reported. A year ago at this time, the 15-year mortgage averaged 3.13 percent.
The low rates have been enough make home sales fly high, despite the drag of the pandemic and its economic impact.
Typically, home sales taper off in the fall. But the market has continued to be strong as 2020 nears year-end.
The U.S. housing market continued to near record levels in October, thwarting the usual fall slowdown. For the first time since 2011, homes sold faster in October than September, reported realtor.com.
“In the fall, we normally see homes sell more slowly and prices pull back from peak levels. But this October, we saw a drop in the time it takes to sell a home even while home prices remain at their summer peak” said Danielle Hale, chief economist for realtor.com.
Nov. 6, 2020 Realty News Report Copyright 2020
Photo credit: Ralph Bivins of Realty News Report. Copyright 2020
File: Mortgages Hit Record Low
File: (2) Freddie Mac. Houston Association of Realtors. Danielle Hale. Sam Khater. Mortgages Hit Record Low of 2.78 on Nov. 5 2020.