Real Estate

Mortgage rates fall to another all-time low


Mortgage rates have fallen to yet another all-time low during the unfolding economic crisis. In this Oct. 22, 2019 file photo, a sign stands outside a home for sale. NEXT: Price dropped to $20M for sprawling, modern Memorial home

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Mortgage rates have fallen to yet another all-time low during the unfolding economic crisis. In this Oct. 22, 2019 file photo, a sign stands outside a home for sale. NEXT: Price dropped to $20M for sprawling,

… more

Photo: David Zalubowski, STF / Associated Press

Photo: David Zalubowski, STF / Associated Press

Mortgage rates have fallen to yet another all-time low during the unfolding economic crisis. In this Oct. 22, 2019 file photo, a sign stands outside a home for sale. NEXT: Price dropped to $20M for sprawling, modern Memorial home

less

Mortgage rates have fallen to yet another all-time low during the unfolding economic crisis. In this Oct. 22, 2019 file photo, a sign stands outside a home for sale. NEXT: Price dropped to $20M for sprawling,

… more

Photo: David Zalubowski, STF / Associated Press

Mortgage rates fall to another all-time low

Mortgage rates have fallen to yet another all-time low.

The average rate for a 30-year fixed-rate mortgage last week fell to 3.15 percent, according to a Freddie Mac survey, the lowest in recorded history. The rate marked the third time since the coronavirus pandemic began that mortgage rates have fallen to the lowest levels in history.

The low rates are a consequence of the economic uncertainty surrounding the pandemic. When investors are unsure of how the economy will fare, they tend to move their money into the relative security of mortgage debt. The increased demand for mortgage debt drives down the rate of returns investors are willing to accept.

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“The low rate environment is a result of investors continuing to prefer the safety of bonds and Fed buying,” said Danielle Hale, realtor.com’s chief economist, in an emailed statement.

For the past six weeks, the number of people applying for a mortgage to purchase a new home has risen from its precipitous drop in April, according to Mortgage Bankers Association data. Freddie Mac reported that purchase demand has rebounded from a 35 percent year-over-year decline in mid-April to an 8 percent increase as of last week.

“Low rates are energizing home buyers with a boost in affordability and are bringing them back to the housing market, despite the swirling economic uncertainty,” Hale said.