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US mortgage rates slip to a record low 3.03% for 30-year loans

Published on: 9:33 pm - Saturday | July 11, 2020

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U.S. mortgage rates have fallen again, topping the sixth record low since the coronavirus pandemic spread to global markets since March.

The popular 30-year fixed-rate mortgage average averaged 3.03%, the lowest in the previous series since 1971, according to a Thursday report by Freddie Mac. The previous record was at a low of 3.07%, and it was up for about a week.

Mortgage rates, which have loosened their grip on 10-year U.S. Treasury bonds, fell sharply in March after investors fled for protection against the coronavirus epidemic early in March. As such, the Federal Reserve has kept its Benmark interest rate close to zero and rates are low and has lifted the mortgage bond as part of an economic stimulus effort.

Low prices have become a catalyst for domestic demand, and in recent weeks there has been a rapid recovery from the onslaught of the epidemic, which has closed the market in a bid to shelter consumers.

Last week, mortgage applications grew 2.2%, and purchase demand was 33% higher than a year earlier, according to the Mortgage Bankers Association.

Although the return to the housing market has been positive, there are still risks, especially since the new record in the United States was cut by the coronavirus. Some states have now suspended or reversed plans to reopen to deal with the spike in cases where economic recovery could be traded.

 

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