The main headline in housing is yet another week of historically low mortgage rates. However, the extremely low rates are starting to have an adverse effect on purchasing power.
This week, and for the eighth time this year, Freddie Mac’s 30-year fixed-rate mortgage average hit an all-time low. The latest reading shows 2.88% for the 30-year loan and 2.44% for a 15-year loan. These low interest rates are clutch for homebuyers, especially those who don’t have a lot for a downpayment, because it gives them more purchasing power.