The average rate for a 30-year fixed mortgage is now at 3.07%. That’s down from 3.13% just last week, according to Freddie Mac.
Why do mortgage rates continue to drop? Investors are piling into the bond markets right now because the COVID-19 wave has heightened in the past couple of weeks. The 3.07% is the lowest rate recorded since 1971 – the year they started recording these rates. To top it all off, the average 15-year rate fell to a seven-year low of 2.56%.
Right now, as investors go towards a “flight to safety”, we wait as many states take a step back from their re-opening efforts. Huge spikes are happening in states like Florida, Texas and New York as people start to get back to a bit of normalcy in their daily life.
All of this is good news for the bond markets and mortgage rates, but this will continue to hinder our economy’s overall recovery. Many economists are now predicting that the recovery will take close to four years if spikes continue to happen across the nation.
Our advice: talk to us about the current rate market for your particular mortgage. Everyone has a different situation and it’s good to know the opportunity you have to save money. We do everything from Conventional Loans to Non-QM to Private Money. It’s a good time to start having discussions if you are not already.
Stay safe and healthy during this time.