Reacting to the spread of the coronavirus and the stock market’s volatility, mortgage rates dropped once again, hitting the lowest point on record since Freddie Mac started tracking rates in 1971. The 30-year mortgage rates dropped to 3.29 percent this week, a full point lower than the they were just a year ago. Other industries such as travel are negatively impacted by the coronavirus, but the virus pushing rates down is actually an opening for the housing industry—at least for now. Economists say that potential buyers may be swayed into a purchase by the low rates, and current homeowners have an opening to refinance, reducing their mortgages by at least 0 .75 percent.
Mortgage rates continued on their downward spiral over the past week, this time, reaching an all-time low of 3.29%. That’s the lowest point on record, according to Freddie Mac, which started tracking rates in 1971. One year ago, rates on 30-year mortgages were at 4.41%—more than a full point higher than today’s averages.
Rates on other loan products are also dropping. On 15-year, fixed-rate loans, rates fell below 3% for the first time in three years, while 5/1 ARM rates hit 3.18%, another three-year low.
Mike Fratantoni, the senior vice president and chief economist for the Mortgage Bankers Association, says the rate drops are largely due to “increasing concerns regarding the economic impact from the spread of the coronavirus, as well as the tremendous financial market volatility.”
