Mortgage rates are now at an all-time low and it is the best time to buy a home. The average U.S. rate for a 30-year fixed mortgage is now at 3.29% this week. This rate is the lowest ever recorded by Freddie Mac since 1971.
The average 30-year fixed-rate mortgage hit a record 3.29 percent this week, the lowest level in its nearly 50-year history. Meanwhile, mortgage applications increased 10 percent last week from one year ago and show no signs of slowing down. Given these strong indicators in rates and sales, as well as recent increases in new construction, it’s clear the housing market continues to be a positive force for the broader economy.
The downward movement of mortgage rates is due in part to fear of the coronavirus spread in the United States. It is also due to the worst stock retreat since the 2008 financial crisis in late February. The yields on 10-year Treasuries, a benchmark for mortgage investors, fell to a record low this week
Homebuyers Should Capitalize on Low Mortgage Rates
Future and current homebuyers who want to get a new home should capitalize on the current mortgage rates. It means that they have to pay lower for the house that they will purchase more than ever.
In addition to a drop in the 30-year fixed, other rates dropped as well, according to the Freddie Mac survey. The 15-year fixed-rate averaged 2.79%, down from 2.95% last week. The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.18%, down from last week’s rate of 3.20%.
The Federal Reserve also cut its benchmark rate by half a percentage point which means that loans will be easier to acquire and interests are lower.
“The coronavirus poses evolving risks to economic activity,” the Fed said in a statement issued at 10 a.m. Tuesday.