Average Rate On 30-year Mortgage Tick Down To 2.88%

The average rate on the 15-year fixed-rate mortgage also fell, to 2.36% from 2.40% last week.

Low interest rates have made already strong demand for housing even more robust, but a lack of available supply has flummoxed would-be buyers.

Last week, the National Association of Realtors reported that the number of existing homes for sale in August was 1.49 million units, a decline of 18.6% from the same time last year. The dearth of inventory has also pushed prices higher, with the median price for both existing and new single-family homes pushing past $310,000.

Economists were concerned about the lack of available homes for sale even before the coronavirus outbreak made many homeowners think twice about upgrading.