Posted on BusinessInsider.com, June 2020
The rate on the popular 30-year fixed rate mortgage fell to another record low of 3.13%, according to Freddie Mac.
It’s the fourth time the US mortgage rate has slipped to a record low since the coronavirus pandemic began to roil global markets in March.
The falling rates have helped fuel a rebound in the US housing market. Just within the past few weeks, applications to purchase a home jumped to the highest in 11 years according to the Mortgage Bankers Association’s Wednesday report.
The 30-year fixed-rate mortgage fell to 3.13%, Freddie Mac reported. That’s a record for the survey, and the fourth time that the rate has hit an all-time low in just a few months. The previous record was 3.15% hit in late May.
Other measures of the 30-year fixed-rate loan have fallen even further — Mortgage News Daily’s records show the rate fell below 3% for the first time ever last week.
Mortgage rates, which loosely take their cues from the 10-year US Treasury bond, first slumped as investors fled to safety in the early days of the coronavirus pandemic market rout. Rates have stayed at historic lows as the Federal Reserve holds its benchmark interest rate near zero and snaps up mortgage bonds as part of its economic stimulus efforts.
“Mortgage rates have hit another record low due to declining inflationary pressures, putting many homebuyers in the buying mood,” Freddie Mac said in a statement. “However, it will be difficult to sustain the momentum in demand as unsold inventory was at near record lows coming into the pandemic and it has only dropped since then.”
Still, the low rates have encouraged buyers to return to the housing market. Applications to purchase a home jumped to the highest level in 11 years last week, the Mortgage Bankers Association said Wednesday. The record-low rates also sparked a jump in refinancing activity as existing homeowners look to save money.
With interest rates at historic lows, it's a great time to buy a house or refinance your current mortgage (if you haven't already). If you have been thinking about selling, think about this: the inventory of available homes is low, but the interest among buyers is high. If you list now, more buyers will qualify to purchase your home. You'll get very little competition from other sellers (there aren't enough to go around), which means plenty of competition from buyers.
Contact me today to discuss the current market. Let's make a plan that makes sense for you.