Long-Term Mortgage Rates Hover Below 3%

This week’s average 2.93% rate for a 30-year mortgage is only slightly higher than last week’s 2.91%. But the 15-year FRM declined to 2.42% from 2.46%.

WASHINGTON (AP) – U.S. average rates on long-term mortgages changed little this week, remaining at historically low levels that have sparked demand for homes.

Mortgage buyer Freddie Mac reported Thursday that the average rate on the 30-year home loan ticked up to 2.93% from 2.91% last week. By contrast, the rate averaged 3.49% a year ago.

The average rate on the 15-year fixed-rate mortgage declined, however, to 2.42% from 2.46% last week.

Housing demand continues as one of few bright spots in the pandemic-hobbled economy. Sales of new homes soared in July, rising nearly 14% as the market continued to gain traction following the spring downturn caused by pandemic-forced lockdowns.

In the wider economy, the government reported Thursday that the number of laid-off Americans applying for unemployment benefits fell to a still-elevated 881,000 last week – evidence that the pandemic keeps forcing many businesses to slash jobs.

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