Historically low-interest rates went even lower this week. The 30-year fixed-rate mortgage average from Freddie Mac went down to 3.03%. Remember, that is an average, which means there are plenty of buyers or refinancers getting rates under 3%.
Low rates are helping spur a spike in purchases. The weekly index from the Mortgage Bankers Association shows purchase demand spiked by 5% week-over-week with a 33% annual increase. The side effect for buyers is home prices are also increasing.