Record-Low Mortgage Rates
July 31, 2020
When people look back on the tumultuous 2020 economic landscape, they might pause a moment to check out home mortgage rates. Over the last three months, these rates have managed to achieve five (!) all-time lows. Currently, Freddie Mac, which buys mortgages from banks, reports an average 3.03% rate on 30-year fixed-rate mortgages, and there is a chance that we could see rates below 3% between now and the end of August.
You can see the remarkable downward trend in mortgages from late 2018 through the end of June on this chart,
and then the light-blue-shaded part of the chart shows projected rates going forward. Compare these rates to 18% fixed-rates back in the early 1980s, or 5% as recently as 18 months ago. You can take the projections with a grain of salt (nobody knows what will happen next week or next month, much less out to the end of the year), but itâ€™s pretty clear that todayâ€™s 3% rate is pretty extraordinary.
Does that mean that most people should be refinancing their home loans? That depends on a number of factors, including their current mortgage rate and how long they expect to own their house. But it may be worth exploring!
As always, we wish you all continued health and safety as we continue to navigate this pandemic. Please note that our firm will continue to hold virtual client meetings only in order to prioritize and protect the health of our clients.
Edward J. Kohlhepp, Jr., CFPÂ®, MBA
Edward J. Kohlhepp, CFPÂ®, ChFC, CLU, CPC, MSPA
Founder & CEO
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