Mortgage Rates Hit – 3.23%
as of April 30, 2020
The size and depth of the secondary mortgage market is helping keep rates at record lows, Freddie Mac says.
Today’s low rates are driving higher refinance activity and a modest uptick in demand for new-home purchases. However, not everyone can take advantage of today’s low rates. Banks tightened lending restrictions and are making loans only to well-qualified buyers or those refinancing. At 3.23%, the average 30-year fixed-rate mortgage is down 0.10% week-to-week (from 3.23%) and 0.91% compared to this same time last year. The 15-year fixed-rate mortgage dropped to 2.77% this week. That’s down .0.09% from last week (from 2.86%) and down 0.83% year-to-year. The 5/1 hybrid adjustable-rate mortgage averaged 3.14 % this week.
Economists at Fannie Mae predicted this week that 30-year rates could go as low as 2.9% in 2021, however it’s still unclear what effect the COVID-19 pandemic will have over the long term.