(Bloomberg) – US mortgage rates fell to their lowest level in four months.
The average for a 30-year loan was 2.93 percent, up from 2.96 percent last week and the lowest since February 18, Freddie Mac said Thursday.
“Mortgage rates continue to decline as markets agree that the rise in inflation is temporary,” said Sam Hather, chief economist at Freddie Mac.
Lower borrowing costs contributed to a pandemic rally in the housing market last year, giving American property seekers more purchasing power. After hitting a record low of 2.65 percent in January, rates have hovered around 3 percent for about two months.
Even with historically low borrowing costs, potential buyers struggle to find homes they can afford as inventory shortages and frantic demand drive prices up.