Lower average mortgage rates in the United States; 30-year loan at 2.99%

WASHINGTON (AP) – Average US rates on long-term mortgages fell this week, remaining near all-time lows as the key 30-year loan fell below 3%.

Mortgage buyer Freddie Mac reported Thursday that the 30-year average mortgage rate fell to 2.99% from 3.01% last week. The benchmark rate has not fallen below 3% for 50 years. In contrast, the rate was on average 3.75% a year ago.

The average rate on the 15-year fixed-rate mortgage fell to 2.51% from 2.54% last week.

Home buying demand continues to be one of the few bright spots in the economy, with a stagnant recovery and economic indicators pointing to slow growth and possible persistent high unemployment, said Freddie Mac. The government reported on Thursday that the economy contracted at an alarming 33% annual rate in the April-June quarter, when the coronavirus outbreak shut down businesses and put tens of millions of people in the dark. unemployment. This is the largest drop in gross domestic product recorded since 1947.

As the virus has surged across the South and West in recent weeks, many states have halted plans to reopen businesses and millions of consumers have delayed any return to travel, shopping and other activities. normal economic. In further evidence of the worsening economic pain, the government reported that more than 1.4 million laid-off Americans applied for unemployment benefits last week.