That's the level that average interest rates for 30-year fixed mortgages fell below last week for the first time since February, by one measurement.
Rates on 30-year fixed loans fell to 2.97% last week from 3.01% the week before, the Mortgage Bankers Association (MBA) said Wednesday in its weekly report—not far above the all-time low of 2.85% reached in December. Those rates tracked with global interest rates that have fallen due to investor concern about the delta variant of COVID-19, said Mike Fratantoni, MBA’s senior vice president and chief economist, in a commentary. Mortgage interest rates are closely linked with yields on 10-year Treasury bonds, which also recently hit their lowest levels since February.
The falling rates didn’t lead to a surge of mortgage applications, the MBA said. In fact, applications dropped slightly because of an ongoing shortage of available homes for sale and rapidly increasing prices. Indeed, home prices have been growing at the fastest pace in more than four decades, according to a report this week from CoreLogic, a real estate data company. Average home prices in June were up 17.2% compared to the year before, the largest year-over-year increase since 1979 as measured by CoreLogic’s home price index.
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