Mortgage rates hit yet another record low this week, as the average rate for a 30-year fixed rate mortgage dropped to 2.67%, down from 2.71% last week and down from 3.73% a year ago, according to Freddie Mac’s Primary Mortgage Market Survey.
It was the first time in the survey’s history, which dates to 1971, that the average rate for a 30-year dropped to below 2.7%.
“The housing market continues to surge higher and support an otherwise stagnant economy that has lost momentum in the last couple of months,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Mortgage rates are at record lows and pushing many prospective homebuyers off the sidelines and into the market. Homebuyer sentiment is sanguine and purchase demand shows no real signs of waning at all heading into next year.”
The average rate for a 15-year fixed-rate mortgage was 2.21%, down from 2.26% a week ago and down 3.19% a year ago.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 2.79%, unchanged from last week but down from 3.36% a year ago.