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Last updated on July 15th, 2022 at 10:01 am
Since the coronavirus pandemic hit the global market it is the sixth record low when US mortgage rates have fallen.
According to a report by Freddie Mac on Thursday, The popular 30-year fixed-rate mortgage averaged 3.03%, the lowest in the series dating back to 1971. The previous record low was 3.07%.
As the rates have continued to below, the Federal Reserve holds its benchmark interest rate near zero and set up mortgage bonds as part of its economic stimulus efforts.
The low rates have been a motivating factor for the home buyers, who are recovering swiftly from the effect of the pandemic, which halted the market, as consumers were under home safety advice.
According to the MBA last week, mortgage applications ticked up 2.2%, and purchase demand was 33% higher than it was a year ago.
While the recovery in the housing market has been positive, there are still risks ahead, especially as the US struggles with new cases of coronavirus.
Some businesses which had reopened have shut because of this spike and this is further derailing the economy.
Sam Khater, Freddie Mac’s chief economist said in a statement “It remains to be seen whether the demand will continue if COVID cases rise to the point that it hinders economic growth,”
Reference Source: Business Insider
