According to CNN Business, Mortgage Rates have crept below 3% for the first time ever. Anna Bahney, CNN Business, reported on July 16, as the country continues to brace itself under the Coronavirus Pandemic.
“The average 30-year fixed-rate mortgage fell to a record low of 2.98% this past week, according to Freddie Mac. That’s the lowest level in the nearly 50 years of the mortgage giant’s survey. The 15-year fixed-rate mortgage dropped to 2.48%.”
“The average rate for a 30-year-fixed mortgage dropped below last week’s record low of 3.03% and marks the seventh new low since March.”
But the home-buying sector isn’t out of troubled waters just yet. The growing concerns and abundance of caution over COVID-19 is threatening to put many temporary layoffs into permanent job loss. Record spikes and single-day highs in Coronavirus cases across the nation continue to show the volatility of the virus. And that proves to be a major hurdle on the path to economic recovery.
Bahney spoke with Danielle Hale, chief economist for Realtor.com.
“On the downside, an escalating number of coronavirus cases in a growing number of states demonstrate how hard the virus is to contain, especially when trying to jump-start the economy,” she said. “On the upside, signs of progress toward a coronavirus vaccine give hope that there’s a path to a new normal where health concerns don’t dominate decision making.”
Ultimately, the growing concerns over the pandemic have eased mortgage rates to below 3% unprecedented fashion. CNN Business adds that it’s pushing up mortgage applications from years ago.
“Rates that are more than 80 basis points below last year’s level mean financing the typical home is $125 less per month versus the same-priced home at last year’s rates, she said.” “This is opening doors for many homebuyers, even as the number of homes available for sale dwindles,” Hale said.