Have you been paying attention to mortgage rates? They’ve nose-dived their way to the lowest levels in history. It’s true: Mortgage rates have never been better.
Rates that had been falling for weeks are now at the lowest levels on record, according to a popular survey that has been tracking mortgage rates since 1971. Rates were considerably higher last year at this time, so swapping out your loan for a new one at a much lower rate can bring substantial savings.
Rates have sunk as a kind of upside to the Coronavirus crisis. Fearful financial markets have sent interest rates plunging, including mortgage rates.
Home loan rates are now seeing a place they have never seen before, per Sam Khater (chief economist at Freddie Mac).
30-year fixed rate mortgage hitting a record 3.29% this week – Lowest level in its near 50 year history. Mortgage applications increased 10% last week from one year ago, showing no signs of decrease anytime soon. The previous all-time low rate for the most popular American mortgage was 3.31% which was set it November of 2012. Taking quite the dip from last week, 30-year home loans average rates were 3.45%, as where one year ago, the much stiffer rate was typically around 4.41%. A survey taken by Freddie Mac on March 5th indicated an average 0.7 point
The reasoning behind these plunging mortgage rates have been due to investors bailing out of stocks and rather opting for Treasury bonds following the economic threat the coronavirus is now carrying. As economist Matthew Speakerman puts it “Much remains unknown with this virus and its potential impact on human life and economic activity.”