On Thursday, US mortgage buyer Freddie Mac said in its weekly report that the US average long-term mortgage rates have fallen to their lowest levels on record this week, while the popular-most 30-year fixed home loans dipped to a new all-time low of 2.81 per cent.
In point of fact, latest weekly report from the US mortgage buyer Freddie Mac came forth days after a deluge of Government data had signalled a dovish inflation outlook including a slowdown in Consumer Price Index alongside Producer Price Index, which in turn had supported US Federal Reserve’s view to keep its benchmark overnight lending rate unchanged at a near-zero level and catalysed a further downward slide of US long-term mortgage rates.
As a matter of fact, since the US Federal Reserve had slashed its key borrowing cost to near-zero last year, US mortgage rates had been hovering at historically low levels. Notably, US Fed Chair Jerome Powell reiterated an urge for further fiscal stimulus in order to revive a bedridden US economy amid a likely second wave of pandemic outbreak, while US Fed policymakers had also pledged not to change interest rate at least until end-2021, though a few consumer business focused lender such as Wells Fargo had been urging for a higher interest rate.
US long-term mortgage rate hits new record low amid tepid inflation outlook
Aside from that, according to the Freddie Mac report released late on Thursday, the 30-year fixed mortgage rates fell to 2.81 per cent from 2.87 per cent a week earlier, while on a year-on-year basis, 30-year fixed home loans fell to 2.81 per cent this week compared to a reading of 3.69 per cent at the same time a year earlier.
In tandem, average rate on the 15-year fixed home loans fell to 2.35 per cent from an earlier 2.37 per cent, while the 5-year average mortgage rates fell to 2.90 per cent this week from an earlier 2.92 per cent.