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Reproduced from Realtor.com; Table: Axios Visuals

U.S. 30-year fixed mortgage rates hit another record low this week, falling to 2.65%, data released Thursday by Freddie Mac showed, but Americans are starting to worry that the goldilocks environment for home sales could be coming to an end.

What's happening: The decline in mortgage rates to the lowest in the 50-year history of the data has helped keep costs down for prospective buyers even as overall prices have skyrocketed thanks to a flood of demand and declining supply.

  • Nationally, housing inventory declined by 39.6% over the last year.

Pay attention: "[H]omebuyers can still take advantage of low rates to offset the steep rises in home prices that we’ve seen in most areas over the last year, but finding a home will continue to be challenging," Realtor.com chief economist Danielle Hale said in a statement.

The future outlook for mortgage rates is likely higher, Hale added, "thanks to a changing landscape in Washington."

  • On Thursday, yields on the 10-year U.S. Treasury note rose above 1.1%, the highest since March, as traders priced in higher chances of another big fiscal spending package from Congress.
  • The mortgage rate moves in line with 10-year yields as well as the rates set by mortgage servicers.

Watch this space: Fannie Mae's Home Purchase Sentiment Index dropped six points from November to December, as both buyers and sellers became far more pessimistic about making a deal.

  • The index fell to its lowest since May, with confidence among those who said it was a "good time to buy" falling by 5 percentage points and among those who said it was a "good time to sell" dropping by 9 percentage points.

Go deeper

Dion Rabouin, author of Markets
Jan 20, 2021 - Economy & Business

Janet Yellen said all the right things to reassure the markets

Illustration: Aïda Amer/Axios

Treasury Secretary nominee and former Fed chair Janet Yellen's confirmation hearing before the Senate Finance Committee on Tuesday showed markets just what they can expect from the administration of President-elect Joe Biden: more of what they got under President Trump — at least for now.

What it means: Investors and big companies reaped the benefits of ultralow U.S. interest rates and low taxes for most of Trump's term as well as significant increases in government spending, even before the coronavirus pandemic.

Trump stock market underperformed Obama's

Data: Yahoo Finance; Chart: Andrew Witherspoon/Axios

U.S. stock markets hit record highs during President Trump's time in office, but mostly underperformed his predecessor.

By the numbers: The stock market selloff that followed the outbreak of the coronavirus pandemic wiped out three and a half years' worth of market gains for Trump. As of March 23, 2020, the S&P 500 had lost 1.5% since Trump's first day in office.

Dan Primack, author of Pro Rata
34 mins ago - Economy & Business

Scoop: Red Sox strike out on deal to go public

Illustration: Sarah Grillo/Axios

The parent company of the Boston Red Sox and Liverpool F.C. has ended talks to sell a minority ownership stake to RedBall Acquisition, a SPAC formed by longtime baseball executive Billy Beane and investor Gerry Cardinale, Axios has learned from multiple sources. An alternative investment, structured more like private equity, remains possible.

Why it matters: Red Sox fans won't be able to buy stock in the team any time soon.