‘We Are in Truly New Territory.’ Mortgage Rates Drop Below 3% for the First Time – Barron’s

Written by Shaina Mishkin

Mortgage rates for a 30-year fixed loan fell below 3% for the first time since at least 1971, according to Freddie Mac ‘s weekly mortgage survey. They could continue to fall if current trends continue, one expert told Barron’s.

The average 30-year fixed-rate mortgage fell to 2.98% for the week ending July 16, the report said, not including fees and points. That marks the first time in 50 years that rates have fallen below 3%, Sam Khater, Freddie Mac’s chief economist, said in a release.

“The drop has led to increased homebuyer demand and, these low rates have been capitalized into asset prices in support of the financial markets,” Khater wrote. “However, the countervailing force for the economy has been the rise in new virus cases which has caused the economic recovery to stagnate, and this economic pause puts many temporary layoffs at risk of ossifying into permanent job losses.”

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By Jessica Yap-Chung
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