Mortgage interest rates fell below 3% for the first time ever. The average 30-year fixed-rate mortgage fell to a record low of 2.98% this past week, according to Freddie Mac. That is the lowest level in the nearly 50 years of the mortgage giant’s survey.
The average interest rate for a 30-year-fixed mortgage dropped below last week’s record low of 3.03% and marks the 7th new low since March. These record-low rates have led to increased demand among homebuyers, which is helping to offset the lack of demand due to the uncertainty around the Pandemic.
Concerns about the economy have helped to push mortgage rates lower over the past few weeks. Meanwhile, the opportunity created by lower mortgage rates is driving up home buying traffic and stabilizing home prices.
It is hard to believe that the long-term average mortgage interest rate is about 8%. At today’s rates, home buyers are saving over $500 per month for every $100,000 borrowed versus long-term averages.
Taking it step further, today’s rates are around 80 basis points lower than last year’s average mortgage interest rates. That means today’s home buyers are saving over $100 per month for every $100,000 borrowed versus the rates from just last year.
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