Mortgage rates continue to hover at near-record lows. But according to Freddie Mac, those rates have the potential to go even lower in the second half of 2020.
“While mortgage rates remained flat over the last week, there is room for rates to move down, said Freddie Mac’s Chief Economist Sam Khater. “This year the 10-year Treasury market has declined by over a full percentage point, yet mortgage rates have only declined by one-third of a point. As financial markets continue to heal, we expect mortgage rates will drift lower in the second half of 2020.”
As of the week-ending April 9, 2020:
- The 30-year fixed-rate mortgage averaged 3.33 percent with an average 0.7 point. A year ago at this time, the 30-year fixed-rate mortgage averaged 4.12 percent.
- The 15-year fixed-rate mortgage averaged 2.77 percent with an average 0.6 point. A year ago at this time, the 15-year fixed-rate mortgage averaged 3.60 percent.
So what does that mean for you? Securing even a fraction of a percentage lower interest rate on your mortgage can save you tens of thousands of dollars over the life of your loan. And as the country (and the economy) recovers from the Coronavirus pandemic, potential buyers could see mortgage rates drop even lower than they are today — making 2020 a great time to invest and buy a new home.