30-year mortgage rate hits record low

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

TRD 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)

TRD Insights: Homebuyers in Black communities charged higher mortgage rates, report finds

TRD Insights: Homebuyers in Black communities charged higher mortgage rates, report finds
Dan Gilbert (Getty, iStock)

Parent of Quicken Loans, Rocket Mortgage seeks $3.3B in IPO

Parent of Quicken Loans, Rocket Mortgage seeks $3.3B in IPO
Fears over a second wave of coronavirus infections and the wait-and-see for the next round of government relief has led U.S. homebuyers to hit pause. (iStock)

Mortgage applications fall as fears of second wave rise

Mortgage applications fall as fears of second wave rise
Acting US Attorney for Eastern District of New York Seth DuCharme and Bank of America CEO Brian Moynihan (Getty, Twitter, iStock)

Bank of America will pay $300K to settle DOJ mortgage lending discrimination claim

Bank of America will pay $300K to settle DOJ mortgage lending discrimination claim
One Court Square and SL Green CEO Marc Holliday

SL Green puts One Court Square loan up for sale

SL Green puts One Court Square loan up for sale
(iStock)

TRD Insights: Home loan forbearance hits lowest level in months

TRD Insights: Home loan forbearance hits lowest level in months
According to the report, purchase applications are down while refinancing is up (iStock)

Applications for mortgages to buy homes drop

Applications for mortgages to buy homes drop
(iStock)

TRD Insights: Home loan forbearance rates fall for fourth week

TRD Insights: Home loan forbearance rates fall for fourth week
arrow_forward_ios

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

Loading...