U.S. Mortgage Rates Tumble to a Record Low for 30-Year Loans

- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -

U.S. mortgage rates fell to a record low for the third time since the coronavirus started roiling global markets.

The average for a 30-year fixed-rate loan was 3.15%, down from 3.24% last week and the lowest in Freddie Mac data going back to 1971. The previous record, 3.23%, was reached last month, shattering March’s low of 3.29%.

The Federal Reserve is holding its benchmark rate at near zero and buying mortgage bonds as part of its plan to stimulate the economy with cheap credit. The purchases have helped stabilize the secondary market for home loans and enabled lenders to pass lower costs on to customers.

Read More: Mortgage Rates Seen Below 3% With Fed Buying Low-Coupon Bonds

The housing market is holding up even as sweeping job losses limit the number of Americans who can take advantage. In a sign of a rebound, the Mortgage Bankers Association’s measure of purchase-loan applications has climbed for six straight weeks, reaching the highest level since January.

April was a rough month housing demand, but buyers who didn’t lose their jobs are returning to the market to take advantage of the low mortgage rates, according to Joel Kan, an economist at the Mortgage Bankers Association.

“That’s one of the drivers,” Kan said.

At the current 30-year average rate, the monthly payment on a $300,000 mortgage would be $1,289. That compares with $1,443 a year ago, when the rate was 4.06%.

This article was originally published on finance.yahoo.com/news/.

Home of Science
Follow me

- Advertisement -

Discover

Sponsor

Latest

Covid: Vaccine target for 16 and 17-year-olds and lockdown exhibitionon August 15, 2021 at 4:19 am

Five things you need to know about the coronavirus pandemic this Sunday morning.Here are five things you need to know about the coronavirus pandemic...

T20 World Cup: England’s three stunning catches against Afghanistanon October 22, 2022 at 3:04 pm

A sensational display of catching helps England set up a five-wicket victory over Afghanistan in their opening game at the T20 World Cup in...

Tonga: First foreign aid plane from New Zealand arriveson January 20, 2022 at 5:29 am

New Zealand and Australia are sending water and supplies, after ash was cleared from the runway.Image source, NZ DEFENCE FORCEThe first foreign aid plane...

World Cup 2022: Fixtures, schedule, groups and where to watch on TVon November 21, 2022 at 10:14 pm

BBC Sport provides a day-by-day guide to who is playing when and where you can watch the match in the 2022 World Cup in...

What is Wordle and why does Countdown’s Susie Dent love it?on January 19, 2022 at 10:57 am

The online word game 'Wordle' has attracted millions of daily users - including Countdown's Susie Dent.
Home of Science
Follow me