Mortgage rates just hit another low. The question now becomes, how long can they stay on this trajectory? (cnbc.com)
If there is an upside to all the pandemic-induced uncertainty in the economy, it’s the rock-bottom mortgage rate bonus for homeowners and homebuyers.
The average rate on the popular 30-year fixed just fell to another record low — 2.87%, according to Mortgage News Daily.
That is about a full percentage point lower than a year ago. And that’s just the average. Some borrowers are getting even lower rates.
“There are pools of loans being sold right now with average rates of 2.625%, meaning some people are getting rates at 2.375-2.5%,” said Matthew Graham, chief operating officer at Mortgage News Daily. “While those likely involve some closing costs, that’s still nuts.”
The less discussed reality is that mortgage lenders and investors are on edge from the pandemic-induced economic uncertainty. The worry that large numbers of people will still lose their jobs and stop making their monthly payments looms large.