30-year mortgage rate hits record low

Average rate of America’s most popular home loan drops to 2.98%

National /
Jul.July 16, 2020 11:11 AM
The 2.98 percent is the lowest Freddie Mac has seen in nearly 50 years of tracking (iStock)

The 2.98 percent is the lowest Freddie Mac has seen in nearly 50 years of tracking (iStock)

The average rate on a 30-year mortgage, America’s most popular home loan, has fallen below 3 percent.

The 2.98 percent is the lowest Freddie Mac has seen in nearly 50 years of tracking. It’s the third consecutive week of decline and the seventh record-low set this year, according to the Wall Street Journal.

Rates last hit a record low of 3.07 percent on July 7. Jeff Tucker, an economist at Zillow, told the Journal that falling below the 3 percent benchmark indicates that “we remain in a crisis here.”

But not all mortgage rates are experiencing the same pace of decline. Jumbo loans — those roughly $510,400 in most markets and $765,500 in New York City and parts of California — have only fallen to 3.77 percent from 3.84 percent at the start of 2020, according to the Journal.

The low rates could propel the housing market. The Mortgage Bankers Association’s weekly purchase index is up 15 percent year over year, which the group attributes to falling mortgage rates.

The record low for the 30-year mortgage set Thursday should not come as a surprise. Freddie Mac chief economist Sam Khater said earlier this month that a dip below 3 percent was a “distinct possibility” as “mortgage rates continue to slowly drift downward.” [WSJ] — Danielle Balbi


Related Articles

arrow_forward_ios
(iStock)

Mortgage applications skyrocket in holiday week

Mortgage applications skyrocket in holiday week
(iStock)

Mortgage requests surge ahead of Thanksgiving

Mortgage requests surge ahead of Thanksgiving
A recent study that found 1 in 10 Black homeowners returned to renting between 1984 and 2017 (iStock)

Black homeowners twice as likely to lose homes and return to renting: Report

Black homeowners twice as likely to lose homes and return to renting: Report
Federal Reserve chairman Jerome Powell (Getty; iStock)

Mortgage originations at 2nd highest level in 20 years: Fed

Mortgage originations at 2nd highest level in 20 years: Fed
The increase put an end to the “recent slump” that gripped the purchase market over the past seven weeks (iStock)

Over the slump? Home-purchase mortgages jump

Over the slump? Home-purchase mortgages jump
Peter Zinkovetsky (Photo via Zinkovetsky Law Firm)

NYC attorney launches virtual closing startup

NYC attorney launches virtual closing startup
(iStock)

Why veterans end up paying more for mortgages than they should

Why veterans end up paying more for mortgages than they should
 JPMorgan’s Marianne Lake (Getty, iStock)

JPMorgan walks back some mortgage constraints

JPMorgan walks back some mortgage constraints
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...