US mortgage rates fell for the first time since January, making for a string of seven consecutive weekly gains.
The average for a 30-year loan was 3.13%, down from 3.18% last week, Freddie Mac data showed Thursday.
Mortgage rates are tracking yields on 10-year Treasury bonds, which fell this week after reaching levels never seen before the pandemic.
Mortgage rates plunged in 2020 and hit a record low of 2.65% in January. Since then, borrowing costs have increased as vaccines fuel optimism about an economic recovery and investors are betting that inflation will accelerate.
The US housing market, in turn, is growing with the pandemic. But the scarcity of houses available for purchase has sparked bidding wars and raised prices. Lack of inventory can reduce sales as Americans struggle to find properties they can afford.
“Without a significant increase in inventory, we can expect sales activity to fall short of expectations during the critical spring season,” said George Ratiu, senior economist at Realtor.com.