Today’s Mortgage Interest Rates: May 6, 2021—Rate Drops Continue

The cost of getting a loan seems to be the one inexpensive attraction in today’s hot housing market as mortgage rates remain below 3% for the third week in a row. The average rate on a 30-year, fixed-rate mortgage stumbled two basis points to 2.96%, giving borrowers another shot at a sub-3% loan.

As this year moves onward into the most active time for real estate (spring and summer), the gridlock of low inventory, rising prices and high demand is expected to loosen, making it a slightly better time for homebuyers.

That’s partly because new sellers are emerging, with 18% more new homes for sales listed the first week in May compared to the same time last year. This is much-needed relief in a market facing a tremendous shortage of some 4 million homes. 

Plus, more houses might be coming online soon, according to a recent survey of almost 4,000 people by Realtor.com. The data showed that 10% of respondents plan on selling this year, while 16% said they are going to sell in the next two to three years. 

Along with more supply, the supersonic rise of home prices has slowed—the weekly median listing price rose 15.4% year-over-year compared to 17.2% in mid-April.

By Natalie Campisi, Forbes Advisor Staff