Average US mortgage rates fell; 30-year loan at 2.96% | Business news



Mortgage rates have stayed near historic lows this week. An indicative 30-year home loan rate is being held below 3% amid further signs of economic recovery from the pandemic recession.

Mortgage buyer Freddie Mac said Thursday that the average rate on a 30-year loan fell to 2.96% from 2.99% last week.

The rate on the 15-year loan, which is a popular mortgage refinancing option among homeowners, fell to 2.23% from 2.27% last week.

In the latest economic news, the government said the number of Americans seeking unemployment benefits fell last week for the sixth straight week to 376,000, a new pandemic low.

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“Despite a stronger economy, the housing market is seeing a slowdown in bidding activity due to moderately higher mortgage rates,” said Sam Hather, chief economist at Freddie Mac. “However, this has not yet resulted in a weaker trajectory for house prices, because stock shortages continue to keep prices high.”

Another report released Thursday showed that Americans have moved into slightly larger homes in less expensive areas. According to Zillow, on average, people who moved to another city in 2020 ended up in the zip code, where the average home value was nearly $ 27,000 lower than their previous zip code.

Rising prices, a shortage of homes on the market, and the ability to work remotely prompted many Americans to relocate in the past year.

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