The average rate on a 30-year fixed rate mortgage dropped to another record low last week. This is the twelfth time this year that mortgage rates have dropped to new low, according to Freddie Mac. Current mortgage rates are now well below last year's levels and expected to maintain their low levels in to 2021.
“It’s not surprising that rates hit another record low this week,” said George Ratiu, senior economist with Realtor.com. “More investors are moving to the bond market for safety and better returns.”
Mortgage rates generally follow the yield on the 10-year Treasury bond. As interest rates on U.S. Treasury notes decline, long-term mortgage rates tend to follow suit.
Today, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.25 percent.
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