US mortgage rates smash to record low
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By Bloomberg20 Nov 2020

Fed announces rate hike decision
The Fed’s governing board, meeting for the last time under Chair Janet Yellen, announced its rate decision today

Mortgage rates in the US have hit another record low.

The average for a 30-year, fixed loan tumbled to 2.72%, down from 2.84% last week and the lowest in data going back almost 50 years, Freddie Mac said in a statement Thursday.

It was the 13th record low this year. The previous one, 2.78%, held for two weeks.

Americans are racing to scoop up homes, taking advantage of 30-year loan costs that have been below 3% since July. While the boom is a key source of strength for the pandemic economy, demand is far outstripping supply, sparking bidding wars and pricing many would-be buyers out of the market.

Weaker retail sales data released this week helped push down yields for the Treasury bonds that guide mortgages, suggesting consumers are becoming more hesitant amid a resurgence of COVID-19 cases and lack of a fresh federal stimulus package.

“While economic growth remains unstable, strong housing demand continues to have a domino effect on many other segments of the economy,” Sam Khater, Freddie Mac’s chief economist, said in the statement.