Record-Low Mortgage Rates
by P.J. DiNuzzo July 23, 2020
Record-Low Mortgage Rates
When people look back on the tumultuous 2020 economic landscape, they might pause a moment to check out home mortgage rates. Over the last three months, these rates have managed to achieve five (!) all-time lows. Currently, Freddie Mac, which buys mortgages from banks, reports an average 3.03% rate on 30-year fixed-rate mortgages, and there is a chance that we could see rates below 3% between now and the end of August.
You can see the remarkable downward trend in mortgages from late 2018 through the end of June, and then the light-blue-shaded part of the chart shows projected rates going forward. Compare these rates to 18% fixed-rates back in the early 1980s, or 5% as recently as 18 months ago. You can take the projections with a grain of salt (nobody knows what will happen next week or next month, much less out to the end of the year), but it’s pretty clear that today’s 3% rate is pretty extraordinary.
Does that mean that most people should be refinancing their home loans? That depends on a number of factors, including their current mortgage rate and how long they expect to own their house. But it may be worth exploring, sooner rather than later.
Sincerely,
P.J. DiNuzzo, CPA, PFS™, AIF®, MBA, MSTx
President, Founder, and Chief Investment Officer
Sources:
https://themortgagereports.com/32667/mortgage-rates-forecast-fha-va-usda-conventional
