First Time for 30-Year Fixed Mortgage Rate to Drop Below 3%

The week ending July 16th was a historic time for mortgage rates. The Mortgage rates in the U.S. dropped below 3% the lowest it has been since record-keeping began in 1971.

The 30-year fixed mortgage rate dropped to 2.98% and the 15-year fixed mortgage rate dropped to 2.48%. This dramatic drop has brought on a huge homebuyer demand according to Freddie Mac.

These record lows are no surprise as the Federal Reserve has been cutting interest rates to support the U.S. economy during the CoVID-19 pandemic. The U.S. economy needs support as over 51 million Americans have already filed for unemployment since the pandemic began.

The pandemic has wreaked havoc our the nation, but the housing market is booming. The cuts to help stimulate the economy have given buyers “enormous buying power,” Kenneth Leon, research director of industries and equities at New York-based CFRA Research, told FOX Business.

According to JPMorgan Chase & Co., their reported revenue from mortgage fees alone was up 229% from this time last year. Citigroup reported a 64% increase to 6.4 billion in mortgage originations. Wells Fargo & Co. reported residential mortgage originations held for sale jumped to $43 billion, a 30% increase due to the lower mortgage rates.

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