Mortgage rates in the U.S. dipped to the lowest level in almost three months.

The average for a 30-year loan was 2.96 per cent, down from 2.98 per cent last week and the lowest since Feb. 18, Freddie Mac data showed Thursday.

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Lower borrowing costs have fueled the pandemic housing market, increasing buying power for Americans looking for properties in the suburbs. Still, a shortage of available homes has driven up prices across the U.S.

Mortgage rates, which hit a record low of 2.65 per cent in early January, had climbed above 3 per cent this year amid optimism about an economic rebound. The dip to 2.96 per cent was the fourth drop in five weeks.