The 30-year fixed-rate mortgage, the most popular long-term commitment after marriage, fell to a record low of 2.67%, according to Freddie Mac. That’s 1) the 15th record low this year and 2) the lowest since Freddie started tracking ~50 years ago.
- FYI: Freddie Mac is a government-sponsored mortgage investor. To calculate the average rate, it compiles rates extended to “high-quality” borrowers by 80 lenders across the country.
Bargain basement rates have pushed folks who might otherwise have held off a few years into the homebuying ring. Compared to 2019, mortgage applications are up 26% and refinances 105%, per the Mortgage Bankers Association.
Economists expect that momentum to continue into 2021, especially after the Fed recommitted Wednesday to its bond-buying program (which includes mortgage-backed securities that have helped keep rates down).
While we’re here…amazing news for aspiring Chip and Joanna Gaineses. Returns on home flips are at a two-decade high, according to ATTOM Data Solutions. But good luck getting your hands on cheap property: Surging home sales have squeezed supply and inflated prices.
by: Alex Hickey