Washington Post writer Kathy Orton reported yesterday that, “The federal government’s inability to come to an agreement on a coronavirus relief package has been good for mortgage rates.
“The 30-year fixed mortgage rate, the most popular home loan product, sank to its lowest level on record. It fell to 2.88 percent with an average 0.8 point, according to the latest data released Thursday by Freddie Mac. (Points are fees paid to a lender equal to 1 percent of the loan amount and are in addition to the interest rate.) It was 2.99 percent a week ago and 3.6 percent a year ago. Since November 2018, when it was 4.94 percent, it has fallen more than two percentage points.
“The 30-year fixed rate has never been this low since Freddie Mac began tracking mortgage rates in 1971. It surpassed the previous low of 2.98 percent, set last month. This is the eighth time since March that the 30-year fixed rate has fallen to a new low.”
The Post article added that, “‘Mortgage rates moved notably downward this week, as a stalemate in Washington dampened investor sentiment,’ said Matthew Speakman, a Zillow economist. ‘Recently, downward pressure on mortgage rates has been consistent, but a combination of factors — including increased demand from borrowers and reluctance from lenders to push rates lower — had kept them afloat. But the inability for the federal government to agree to a new fiscal relief bill last week finally tipped rates over the edge and down to new all-time lows. Now that the threshold has been broken, more downward rate movements may be on the horizon.'”
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