US long-term mortgage rates fell this week, reaching record lows for the 13th time this year, amid fresh signs of weakness in the pandemic-ravaged economy.
Mortgage buyer Freddie Mac reported Thursday that the average rate on the 30-year benchmark loan declined to 2.72 percent from 2.84 last week. For contrast, the rate averaged 3.66 a year ago.
Meanwhile, the average rate on the 15-year-fixed-rate mortgage slightly declined to 2.28 percent from 2.34 percent.
Home loan rates have trended downwards throughout most of the year, stimulating buying interest from potential home-owners.
However, fresh signs emerged this week, revealing that the Coronavirus is likely continuing to slow the economy and force businesses to cut jobs. The government reported Tuesday that retail sales in the United States (which represent a third of overall consumer spending), grew a sluggish 0.3 percent in October, despite retailers offering early holiday discounts online and in stores.
Furthermore, a recent report from the Labor Department showed that the number of Americans seeking unemployment aid rose last week to 742,000, the first increase in five weeks. The worsening pandemic and arrival of cold weather could encourage layoffs in the weeks ahead. Of the roughly 20 million Americans receiving some form of jobless benefits, about half will lose that aid when two federal programs expire at year's end.
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