The average rate for a 30-year fixed-rate mortgage hit yet another record low this week, at 2.71% – the lowest ever recorded by Freddie Mac’s Primary Mortgage Market Survey, which dates back to 1971.
That’s down from 2.72% last week and down from 3.68% a year ago.
However, due to low inventory, home sales have “hit a wall,” says Sam Khater, chief economist for Freddie Mac, in a statement.
“While homebuyer appetite remains robust, the scarce inventory has effectively put a limit on how much higher sales can increase,” Khater says. “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.”
For the week ended Dec. 3, the average rate for a 15-year fixed-rate mortgage was 2.26%, down from 2.28% the previous week and down from 3.14% a year ago.
The average rate for five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 2.86%, down from 3.16% the previous week and down from 3.39% a year ago.
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