Long-term mortgage rates just hit an all-time low

Long-term mortgage rates fell this week as the benchmark 30-year home loan reached a new all-time low.

Mortgage buyer Freddie Mac reported Thursday that the average rate on the key 30-year loan declined to 3.13 percent from 3.21 percent last week. It was the lowest level since Freddie began tracking average rates in 1971. A year ago, the rate stood at 3.84 percent.

The average rate on the 15-year fixed-rate mortgage eased to 2.58 percent from 2.62 percent.

In recent weeks, signs have pointed to the economy appearing to be slowly recovering from the devastation of the coronavirus pandemic, with more businesses partially reopening. The housing market has shown strength and robust homebuying demand, but it may be difficult to sustain because of the tight supply of homes available for sale, said Freddie Mac chief economist Sam Khater.