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U.S. mortgage rate for 30-year loans sinks to new record low

The 30-year fixed-rate mortgage fell 0.01% from the week's previous average low of 2.67%, Freddie Mac said Thursday. File Photo by Alexis C. Glenn/UPI
The 30-year fixed-rate mortgage fell 0.01% from the week's previous average low of 2.67%, Freddie Mac said Thursday. File Photo by Alexis C. Glenn/UPI | License Photo

Dec. 24 (UPI) -- Long-term mortgage rates in the United States have fallen to a record low for the 16th time this year.

Freddie Mac's primary mortgage rate average fell in December to 2.66%, the lowest rate in the history of the survey, which has been conducted since 1971.

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The 30-year fixed-rate mortgage fell 0.01% from the week's previous average low of 2.67%. The current rate is nearly 1 point lower than the 3.74% average rate a year ago.

"The housing market is poised to finish the year strong as low mortgage rates continue to fuel homebuyer demand and refinance activity," Sam Khater, Freddie Mac chief economist, said in a statement.

"Moving into 2021, we expect rates to hold steady but the key driver in the near term will be the trajectory of the COVID-19 pandemic and the execution of the vaccine."

Freddie Mac said the average rate for a 15-year fixed mortgage is down to 2.19%, a full point lower year-over-year.

The five-year Treasury-indexed hybrid adjustable-rate mortgage average was unchanged at 2.79%.

Freddie Mac, created by Congress in 1970, provides mortgage capital to lenders in the secondary mortgage markets.

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