The average rate dropped from last week’s 2.93% and its previous record-low Aug. 13 of 2.88%. It’s also cheaper than the average adjustable-rate loan (3.11%).
Average rates on long-term mortgages fell this week. The key 30-year mortgage again marked an all-time low. Mortgage buyer Freddie Mac reported Thursday that the average rate on the 30-year home loan declined to 2.86% from 2.93% last week. By contrast, the rate averaged 3.56% a year ago. The average rate on the 15-year fixed-rate mortgage slipped to 2.37% from 2.42% last week. A 5/1-year adjustable rate mortgage averaged 3.11% this week. Housing demand continues as one of few bright spots in the pandemic-hobbled economy. Spurred by historically low rates, applications for mortgage loans are up 25% from a year ago, according to Freddie Mac.