Mortgage rates reached another low this week, helping to keep rising interest rates in check
Mortgage rates have hit yet another record-breaking low, this time falling to 2.88% on 30-year, fixed-rate loans. That’s down from 2.99% last week and 3.60% a year ago. It’s the lowest average rate ever recorded, according to mortgage purchaser Freddie Mac. “The resilience of the housing market continues as mortgage rates hit another all-time low, giving potential buyers more purchasing power and strengthening demand,” says Sam Khater, chief economist at Freddie Mac. That “more purchasing power” part might be surprising, especially as home prices rise and incomes fall. But according to the latest data from title insurer First American, it’s true. Low rates increased the average buyer’s budget by around $15,000 in July.
