Mortgage rates hit historic lows, again

With mortgage rates tumbling to a new low, some wonder just how far they will continue to fall.

According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average sank to a record-low 3.15% with an average 0.8 point. It is the lowest recorded since Freddie Mac began tracking mortgage rates in 1971, and it surpassed the previous historic low of 3.23% set in late April. The 30-year fixed rate, 3.24% a week ago and 3.99% a year ago, has set new lows three times in just the past few months.

The 15-year fixed-rate average fell to 2.62% with an average 0.7 point. It was 2.7% a week ago and 3.46% a year ago. The five-year adjustable-rate average slid to 3.13% with an average 0.4 point. It was 3.17% a week ago and 3.6% a year ago.

Although buyers may have been hoping the coronavirus pandemic would cause home prices to fall, that hasn’t been the case so far. Home values climbed 4.4% nationally in March, according to the S&P Case Shiller index released this week.

“The strong buyer demand heading into this crisis has held fairly steady in the months since the outbreak,” said Matthew Speakman, a Zillow economist. “Still, so much remains uncertain — including the longer-term path for home prices — but for now, competition for homes is holding strong and keeping prices afloat.”

Bankrate.com, which does a weekly mortgage rate trend index, found three-quarters of experts surveyed expect rates to stay about the same in the coming week.