Nov. 5 (UPI) — U.S. mortgage charges hit a 12th report low this week amid pending outcomes within the federal election.

Matthew Speakman, an economist for Zillow, mentioned the low fee this time was pushed by the “unsure final result of the election.”

“The present unsure final result of the election seems to have led to a spike in demand for presidency bonds, putting downward stress on mortgage charges,” Speakman mentioned in a press release Wednesday.

The 30-year fixed-rate mortgage averaged 2.78% for the week ending Thursday, marking the bottom fee since 1971, Freddie Mac mentioned.

The present mortgage fee additionally marks the 12th report low this yr. The earlier report low of two.8% held for 2 weeks.

Mortgage charges have declined since March amid financial uncertainty over the COVID-19 pandemic.

“A day after rising to their highest ranges since June, bond yields plummeted at this time, falling by extra in at some point than they’ve in some other day since April,” Speakman mentioned. “On this case, bond market buyers seem like decoding the unsure election outcomes as an indication that extra financial stimulus is unlikely within the close to time period. The event helped push mortgage charges notably downward.”

“Given the still-uncertain election outcomes, extra sharp actions in mortgage charges in both course could also be on faucet within the coming days and weeks,” Speakman added.

The Federal Reserve plans to carry its benchmark fee close to zero.

Mortgage charges have been under 3% since July, however the demand for houses has exceeded provide resulting in larger costs that reduce into financial savings homebuyers achieve from decrease rates of interest.