Investors reacting to economic woes fled Wall Street for the surety of the bond market this week, driving mortgage rates to another record low. According to Freddie Mac, it is the second time in two weeks average mortgage rates set a new low since data tracking began in 1971.
Bond yields, which mortgage rates are closely linked to, fell sharply, as reports surfaced that the COVID-19 virus is seeing a resurgence in many states. Infection rates have climbed in more than two dozen states over the past two weeks as businesses begin to reopen and social distancing requirements begin to ease.
The record low mortgage rates is expected to drive demand for purchases and refinances, both of which have seen significant increases as people emerge from months of lockdown.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.0 percent and 15-year rates are near 2.625 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.