The average rate on a 30-year fixed mortgage in the U.S. fell to its record low in early October.
According to NBC News, the mortgage rate dropped to 3.37 percent from 3.39 last week. Mortgage buyer Freddie Mac confirmed this on Thursday and also reported that the rate reached 3.36 percent two weeks ago in 1971.
Vice President and Chief Economist of Freddie Mac, Frank Nothaft told NBC News mortgage rates remained more or less unchanged this week as home construction built up steam.
"Construction on single-family homes jumped to an annualized rate of 11 percent in August, the strongest pace since August 2008," Nothaft said.
"Over the first nine months of the year, single-family starts were 23 percent higher than the same period last year."
The average rate on the 15-year fixed mortgage, which is usually used for refinancing, decreased to 2.66 percent, a record lower than what it was from last week's 2.7 percent.
According to NBC news, cheaper mortgages are encouraging the shy but steady housing recovery.
NBC News also reported that the average rate on the 30-year loan has stayed the same, below 4 percent throughout the year and rates have dipped lower since September, when the Federal Reserve started buying mortgage bonds to help homeowners and lenders.
The Fed announced earlier this month that it will keep buying mortgage bonds until the job market stands strongly on its feet.
Home sales and prices have risen and continue to from last year in most areas. Home builders are more confident to build more homes as lower rates have also influenced more people to refinance.
