(Bloomberg) -- U.S. mortgage rates dropped slightly, inching back toward a record low set last month.
The average for a 30-year, fixed loan was 2.88%, down from 2.9% last week, Freddie Mac said in a statement Thursday. The rate has held below 3% since late July and hit 2.86% last month, the lowest in data going back to 1971.
Read more: Home Sales Contracts Hit Record With Low Rates Fueling Rally
Rates started sliding in March when the pandemic hit the U.S. and roiled financial markets. The cheaper borrowing costs have fueled a housing rally that has boosted the economy.
“The housing market has been a strong, upward trajectory during a very uncertain time,” said Sam Khater, Freddie Mac's senior economist.
Even with unemployment high, Americans looking to take advantage of the low rates have filed a flood of mortgage applications as they seek more space to spread out.
A shortage of homes to buy has combined with the surging demand to prop up prices, potentially keeping some buyers on the sidelines as they struggle to find properties they can afford.
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