There they go again. A survey says mortgage rates have fallen to another new all-time low and have put homebuyers “in the buying mood” while giving homeowners more reason to refinance and save.
Low lending costs and beefed-up borrowing are exactly what Chairman Jerome Powell and the Federal Reserve want to see as they try to heave the U.S. economy out of its COVID-19 recession.
Powell last week issued a fresh warning about the risk of “longer-term damage” to the economy, and he pledged to members of Congress that the Fed would keep interest rates extremely low.
Mortgage rates plunge to new low in 50-year-old survey
Mortgage rates plummeted last week to an average 3.13% for a 30-year fixed-rate home loan, from 3.21% a week earlier, mortgage company Freddie Mac reported on Thursday.
The new rate is the lowest ever recorded in Freddie Mac’s weekly survey, which started in 1971, and it was fourth time since early March that the company announced a new all-time low.
The survey rates come with an average 0.8 point. One year ago, borrowers were landing 30-year fixed mortgages with typical rates of 3.84%.
Another, more frequent survey of lenders has been finding even lower average mortgage rates this month. Mortgage News Daily reported that 30-year rates sank to an unprecedented 2.94% on Thursday June 11.
And you think that’s good? Smart mortgage comparison shoppers have been turning up rates as incredibly low as 2.5%.