WASHINGTON–Even as one forecast has called for mortgage rates to begin rising, new data from Freddie Mac show rates on home loans have hit another “record low,” the 13th time a new bottom has occurred this year.
The average interest rate on a 30-year fixed-rate mortgage dropped to 2.72%, according to Freddie Mac, the lowest level in the nearly 50 years of the mortgage giant's survey. The 15-year fixed-rate mortgage dropped to 2.28%.
"Weaker consumer spending data, which accounts for the majority of economic growth, drove mortgage rates to a new record low," said Sam Khater, Freddie Mac's chief economist, in a statement. "While economic growth remains unstable, strong housing demand continues to have a domino effect on many other segments of the economy."
The low interest rates continue to fuel a boom in the U.S. housing market. During the third quarter, Americans' mortgage debt climbed to a record high of nearly $10 trillion according to the Federal Reserve Bank of New York.