If you locked in an interest rate on Thursday, you are one happy camper today. Mortgage rates dropped to an all-time low last week. They settled at 3.1% for a 30-year fixed-rate mortgage. This came right after the week before where rates hit a one-month high.
Why the sudden drop?
COVID-19 cases soared to new highs in states like Texas, Florida and Arizona after they began reopening their economies. Also, the Unemployment Report that came out the Friday before showed a 13.3% rate down from a record of 14.7% in April. But, there was a footnote that said the number should’ve been three percentage points higher. In other words, in May the report should’ve read 16.3% not 13.3%.
Once investors saw that the labor market and our economy were not as strong as previously thought, mortgage rates tumbled to the 3.1% on Thursday.
The good news is, many economists do not predict that mortgage rates will change much for the next month. Black Knight says that loans in forbearance fell for the second straight week to 4.66 million from 4.73 million. And people are coming out in waves to buy property even with the low inventory.
To discuss rate options and the possibility to lock in, contact us today!