Mortgage rates reach new low
With remarkable regularity, each new month seems to send the 30-year fixed-mortgage rate down to a historic low.
According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average tumbled to a record-low 3.07% with an average 0.8 point. (Points are fees paid to a lender equal to 1% of the loan amount and are in addition to the interest rate.) It was 3.13% a week ago and 3.75% a year ago.
The 30-year fixed rate is at its lowest level since Freddie Mac began tracking mortgage rates in 1971. It surpassed the previous low of 3.13% set last month. This is the fifth time the 30-year fixed rate has fallen to a new low in the past several months.
Freddie Mac, the federally chartered mortgage investor, aggregates rates from 125 lenders across the country to come up with national average mortgage rates. It uses rates for borrowers with flawless credit scores. These rates are not available to every borrower.
The 15-year fixed-rate average slipped to 2.56% with an average 0.8 point. It was 2.59% a week ago and 3.18% a year ago. The five-year adjustable-rate average fell to 3% with an average 0.3 point. It was 3.08% a week ago and 3.45% a year ago.
"Mortgage rates fell back to all-time lows this week as the market continues to weigh the economic risks posed by recent surges in covid-19 case counts," said Matthew Speakman, a Zillow economist. "The steady declines suggest that investors are keeping a very close eye on coronavirus case counts and keenly awaiting evidence of how the economy responds as a result of the outbreak. If the uptick in cases does indeed prevent states or cities from continuing their plans to reopen, or even prompt more closures, then rates would likely plunge further and reach new lows."
Every time mortgage rates appear to reach a...