US average long-term mortgage rates little changed; 30-year at 2.87 per cent

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US average long-term mortgage rates little changed; 30-year at 2.87 per cent

Late on Thursday, US mortgage buyer Freddie Mac said in a report that the US long-term mortgage rates on an average had been little changed this week, levelling off in recent past following a year-long drop to a multi-year low.

Aside from that, the New York-based Freddie Mac had also added at its weekly report published late on Thursday that the average rate on the popular-most 30-year fixed home loans had eased marginally this week to 2.87 per cent from an earlier 2.88 per cent, however, on an annualized basis, the 30-year fixed home loans were down to 2.87 per cent for the week that ended on October 10 compared to a reading of 3.57 per cent registered at the same time a year earlier.

Besides, the average rate on 15-year fixed-rate home loans had witnessed an uptick to 2.37 per cent from an earlier 2.36 per cent. In factuality, US home loans have been harbouring at a historically low level since the US Federal Reserve had slashed its benchmark borrowing cost to a near-zero level and had vowed to keep the overnight lending costs to a decade-low level at least until end-2021.

US long-term mortgage rates hover at historically low levels, flesh up demands

Meanwhile, despite a record number of people seeking for jobless claims, demands for available homes for sales had surged by a substantial margin over the recent months as a number of work-from-home employees appeared to be deserting the densely populated US cities amidst a pandemic at large, while media reports unveiled that the demands of US existing and new homes in the suburbs and countryside had significantly fleshed up.

US Labour Department had reported on Thursday that about 840,000 people had filed for initial jobless claims during the week that ended on October 3. Apart from that, while a multi-decade low US mortgage rate had been beefing up demands for both new and existing homes, analysts were expecting a price hike amid a scarcity of available homes for sales.