Mortgage rates hit a new record low heading into the holiday weekend as a resurgence of coronavirus cases prompted investors to rush to the relative safety of the bond markets.
The average rate for a 30-year fixed mortgage is 3.07%, the lowest in a data series that goes back to 1971, and down from 3.13% last week, Freddie Mac reported on Thursday. The average 15-year rate tumbled to a seven-year low of 2.56%.
“Mortgage rates continue to slowly drift downward with a distinct possibility that the average 30-year fixed-rate mortgage could dip below 3% later this year,” said Sam Khater, Freddie Mac’s chief economist. “On the economic front, incoming data suggest the rebound in economic activity has paused in the last couple of weeks with modest declines in consumer spending and a pullback in purchase activity.”