Mortgage Rates Set New Record Low, Falling Below 3% As Concerns Rise About Coronavirus Second Wave
The average rate on the popular 30-year fixed mortgage hit 2.97% Thursday, according to Mortgage News Daily, as the stock market sold off and investors rushed to the relative safety of the bond market.
The market sell-off is being fueled by new concerns that there may be a second wave of the coronavirus, which already decimated the economy in April and May.
Barely a week ago it looked like mortgage rates were finally breaking higher, but in a sudden reversal, they just set a new record low.
“This is a very abrupt and arguably unexpected change given that last week looked like a potentially scary lift-off for rates after an extended stay near the previous all-time lows,” said Matthew Graham, chief operating officer at Mortgage News Daily. “It suggests we shouldn’t count out the ability of interest rates to maintain these levels (or improve upon them) even if the economy continues showing signs of healing.”