Amid the tensions of the global pandemic and national affairs, there has been one shining light of 2020. In efforts to stabilize and salvage a plummeting economy, the Federal Reserve has continued to slash the federal reserve rates and though those rates are not a direct correlation into the mortgage rates, we have seen historic mortgage interest rates throughout the year.
In the recent days the Chairman of the Federal Reserve, Jerome Powell, testified before Congress. He explained that despite the gloomy markets of 2020, the housing market might just be the beacon of hope that pulls the US economy out of this COVID recession.
Amidst Powell's testimony before Congress, the mortgage rates hit a new all time low. As of June 30th, 2020; US mortgage rates dipped to an average of 2.94% for a 30-year fixed-rate mortgage. Along with the dirt cheap mortgage rates, the housing market is currently on fire. Nationally, the pending home sales shot up by 44.3% from April to May.
The chief economist for the National Association of Realtors said, "This has been a spectacular recovery for contract signings, and goes to show the resiliency of American consumers and their evergreen desires for homeownership. This bounce back also speaks to how the housing sector could lead the way for a broader economic recovery."
With these current record lows on mortgage rates, it is important to shop around to find the best interest possible for your given personal situation, as well as shop around for home insurance rates. Also, given the business of the market it is important to insurance that your are pre-approved with a lender prior to any serious shopping around, since homes are going under contract quickly these days.
Our agents are ready to help you through this impressive housing market. We have incredible lenders we work with to help you find the best interest rate available during this historic time.
*Information provided by Yahoo Finance