Daily Management Review

US mortgage rate falls below 3% for the first time in history amid the pandemic


The interest rate on a 30-year mortgage loan in the United States fell below 3% for the first time in history, according to the Wall Street Journal.

The fall in the average rate of a 30-year loan to 2.98% (the lowest in 50 years of registration) was reported by the largest American mortgage agency Freddie Mac.

In early 2020, the average 30-year mortgage rate was 3.72%, up from 3.81% a year ago. As a comparison, the publication recalls that in the early 1980s, after the tough measures of the Federal Reserve to combat inflation, the mortgage rate exceeded 18%.

Now analysts attribute the historically low values to the crisis around the coronavirus pandemic. "This is an incredible psychological mark. It indicates that we remain in crisis," Jeff Tucker, an economist at real estate agency Zillow Group, told the publication. 

source: wsj.com