US mortgage rates stall; 30-year remains at all-time low

Business News

FILE – In this Sept. 25, 2019 file photo, a realty company’s signs rest on several lawns in front of newly constructed houses in Brandon, Miss.. Long-term U.S. mortgage rates fell, Thursday, June 18, 2020, as the benchmark 30-year home loan reached a new all-time low. Mortgage buyer Freddie Mac reports that the average rate on the key 30-year loan declined to 3.13% from 3.21% last week. (AP Photo/Rogelio V. Solis, File)

NEW YORK (AP) — Long-term U.S. mortgage were unchanged this week as the benchmark 30-year home loan remains at its lowest rate in nearly 50 years.

Mortgage buyer Freddie Mac reported Thursday that the average rate on the key 30-year loan stood at 3.13%, the same as last week. It is the lowest level since Freddie began tracking average rates in 1971. A year ago, the rate stood at 3.73%.

The average rate on the 15-year fixed-rate mortgage rose slightly to 2.59% from 2.58% last week, but it is down from 3.16% a year ago.

The historically low rates coincide with a housing market that is showing signs of recovery. Sales of new homes rose a surprisingly strong 16.6% in May with the reopening of major parts of the country. Sales of existing homes, though, are still struggling, with a 9.7% plunge in May. And, there is still a tight supply of homes available for sale, running up against high demand.

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