The average rate for a 30-year fixed mortgage was 3.07%, down from 3.13% last week, Freddie Mac says
Mortgage rates dropped to an all time low this week as the effects of COVID-19 cause investors to find refuge in the bond markets.
The average rate for 30 year fixed mortgage was 3.07% down from 3.14% last week. Also hitting a new seven year low of 2.56% is the 15 year mortgage according to Freddie Mac.
Bond yields which are typically used as benchmarks by mortgage investors have fallen to near record lows over the last week on news of a resurgence in COVID-19 infections. Ideas about a V-shaped economic recovery have been dwindling since the resurgence of the virus.
The vast majority of US mortgages are packaged into fixed assets and sold to investors who are the ones that ultimately set mortgage rates by deciding what returns they will except which is known as “yield.” It’s clear investors are looking for safe Haven’s such as mortgages to park their money.
