Mortgage rates hit 12th record low of 2020, further fueling a booming US housing market

• The average US 30-year fixed mortgage rate fell to 2.78% from 2.8%, marking the 12th record low this year.
• Rates are no is the lowest in Freddie Mac data going back nearly 50 years.
• Inexpensive loans have fueled a powerful housing rally during the coronavirus pandemic.
• "Despite the uncertainty that we've all experienced this year, the housing market, buoyed by low rates, continues to be a bright spot," said Sam Khater, Freddie Mac's chief economist.
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Mortgage rates in the US hit another record low for the 12th time this year on Thursday.

The average rate for a 30-year fixed mortgage fell to 2.78%, the lowest in Freddie Mac data going back nearly 50 years. The previous rate was 2.8%, which only held for two weeks.

The Federal Reserve's pledge to keep interest rates near zero means that mortgage rates for homeowners and buyers are likely to remain low for quite some time.

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Inexpensive loans have fueled a powerful housing rally in the otherwise beaten-down economy. Sales of new and existing homes have rebounded strongly after the pandemic halted buying in March and April. In September, existing home sales rose to a new 14-year high. However, increased demand may begin to outpace supply and push prices higher.

"Mortgage rates hit another record low, the twelfth time this year, due to economic and political ambiguity," said Sam Khater, Freddie Mac's Chief Economist in a press release. "Despite the uncertainty that we've all experienced this year, the housing market, buoyed by low rates, continues to be a bright spot."