Realty World - Sierra PropertiesLicense #: 00319644

Realty World - Sierra PropertiesLicense #: 00319644

It’s Another Record Low for Mortgage Rates: 2.71%

Could home buyers be starting to take the low rates for granted?

“Despite persistently low mortgage rates, home sales have hit a wall,” says Sam Khater, Freddie Mac’s chief economist. “While home buyer appetite remains robust, the scarce inventory has effectively put a limit on how much higher sales can increase. Unfortunately, the record low supply combined with strong demand means home prices are rapidly escalating and eroding the benefits of the low mortgage rate environment.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Dec. 3:

*30-year fixed-rate mortgages: averaged 2.71%, with an average 0.7 points, falling from last week’s 2.72% average. Last year at this time, 30-year rates averaged 3.68%.

*15-year fixed-rate mortgages: averaged 2.26%, with an average 0.6 points, dropping from last week’s 2.28% average. A year ago, 15-year rates averaged 3.14%.

Source: Freddie Mac and “Instant Reaction: Mortgage Rates, December 3, 2020,” National Association of REALTORS® Economists’ Outlook blog (Dec. 3, 2020)

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