Long-term US mortgage rates have slipped (Jan. 28)
The damage from the coronavirus pandemic on the US and global economies suppressed home loan rates through most of 2020.
WASHINGTON (AP) — US long-term mortgage rates slipped this week as the economy remains burdened by the coronavirus pandemic.
Mortgage buyer Freddie Mac reported Thursday that the average rate on the benchmark 30-year fixed-rate home loan eased to 2.73 percent from 2.77 percent last week. By contrast, the rate stood at 3.51 percent a year ago.
The average rate on 15-year fixed-rate loans, popular among homeowners seeking to refinance their mortgages, ticked down to 2.2 percent from 2.21 percent.
The damage from the coronavirus pandemic on the US and global economies suppressed home loan rates through most of 2020. The US economy shrank last year by the largest amount in 74 years, the government reported Thursday, despite the trillions of dollars in federal aid that flowed to American families and small businesses. The deep recession triggered by the pandemic that erupted in the United States 10 months ago left tens of millions of people jobless.
Economists forecast modest increases in mortgage rates this year, but they probably will remain relatively low, with the Federal Reserve keeping interest rates near zero as needed until the economy recovers.
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