Great news for homebuyers and homeowners looking to refinance their mortgages: mortgage rates have dropped yet again. According to the latest data from Freddie Mac, the average rate for a 30-year fixed-rate mortgage fell to 2.88% in mid-August, down from 2.99% the previous week. This marks the fourth consecutive week of declining rates.
But the good news doesn’t stop there. As the article explains, “The drop in mortgage rates comes as the yield on the benchmark 10-year Treasury note, which tends to influence mortgage rates, has fallen to its lowest level since February.”
So why are rates dropping? One factor is the ongoing uncertainty surrounding the COVID-19 pandemic and its impact on the economy. As the article notes, “The Delta variant of the coronavirus has raised concerns about the pace of the economic recovery, which has led investors to seek safer investments like bonds. That, in turn, has pushed bond yields down, including the yield on the 10-year Treasury note.”
What does this mean for homebuyers and homeowners? Lower mortgage rates can make it more affordable to buy a home or refinance an existing mortgage. As the article explains, “For homebuyers, lower mortgage rates mean they can afford to borrow more money without seeing a significant increase in their monthly payments. For homeowners looking to refinance, lower rates can mean significant savings on their monthly mortgage payments.”
Of course, it’s important to keep in mind that mortgage rates can be influenced by a variety of factors, and they can fluctuate over time. If you’re considering buying a home or refinancing your mortgage, it’s a good idea to work with a trusted lender who can help you navigate the process and find the best rates and terms for your situation.