Mortgage rates near historic lows this week
Mortgage rates this week near historic lows. The benchmark 30-year home loan is down 3% amid signs of the economy recovering from the pandemic slowdown.
Mortgage buyer Freddie Mac said Thursday that the average 30-year rate loan declined to 2.96% from 2.99% last week.
The 15-year loan rate, a popular option among homeowners looking to refinance their mortgages, dropped to 2.23% last week from 2.27%.
In the latest economic news, the government reported that the number of Americans seeking unemployment benefits fell to 376,000 last week for the sixth straight week, sparking a new pandemic.
“Despite a strong economy, the housing market is experiencing a slowdown in purchase application activity due to marginally higher mortgage rates,” said Sam Khatter, chief economist at Freddie Mac. “However, this has yet to translate into a weaker home price trajectory as pricing remains elevated due to inventory crunch.”
Another report on Thursday found that Americans moved to slightly larger homes in less expensive areas. According to Zillow, on average, people who moved to a different city in 2020 ended up in a ZIP code where median home values were about $27,000 lower than in their previous ZIP code.
Rising prices, a lack of homes on the market and the ability to work remotely prompted many Americans to relocate last year.