Skip to main content

Fed Drives Rates On Home Loans To Record Lows

May 20, 2020
Federal Reserve Chairmain Jerome Powell warns that without added government aid, there could be "lasting damage,"
Director of Events

The economy has taken a number of serious blows due to the COVID-19 pandemic, and with its recovery still very much turbulent, Federal Reserve Chairman Jerome Powell warns that without added government aid, there could be "lasting damage," as the coronavirus has forced the Fed to drive mortgage rates to new lows, according a MoneyWise report via Yahoo Finance. 
 
The report stated that a Mortgage News Daily survey showed 30-year fixed-rate mortgages drop to an average of 3.09%, which is a new survey low for the publication. Previously, it was reported that mortgage rates are set by lenders for the most part and many of them aren't inclined to offer rates below the 3% mark. Though, the current trend sees 30-year rates dipping below the 3.3% mark, according to a recent forecast from Freddie Mac.
 
"Even so, the site's economists say homebuyers will often find getting a loan now requires a larger down payment and a higher credit score 'as lenders seek to mitigate their own risks against economic uncertainty,'" added Zillow economist Matthew Speakman, according to the report. Lenders continue to raise lending standards, making it more difficult for potential borrowers to secure a loan.
 
In addition, the Yahoo Finance report revealed that some folks looking to refinance their homes aren't being offered the low rates they thought they would receive. However, measures taken yesterday by the Federal Housing Finance Agency will allow Fannie Mae and Freddie Mac borrowers in forbearance to apply for refinancing and new purchase mortgages once their loans are current, a measure that waives a previous mandatory wait of 12 months, and thus granting quicker access to record-low rates.
 
Click here to read more about the future of mortgage rates.

 
About the author
Director of Events
Navi Persaud is Director of Events at NMP.
Published
May 20, 2020
Co-Founder Mat Grella Terminated From NEXA

NEXA CEO Kortas states negotiations regarding the buyout will continue.

Mar 27, 2024
Comings And Goings At AmeriHome

Chief Operating Officer John Hedlund announced his retirement on Thursday in a LinkedIn post.

Mar 22, 2024
Rocket's Tim Birkmeier To Retire

Birkmeier is bidding farewell after a 28-year career at Rocket Companies.

Mar 21, 2024
How NAR’s Settlement Impacts Homebuying

While the settlement's silver lining is that homes are expected to become more affordable, many uncertainties loom over the housing market.

Mar 19, 2024
NAR Reaches $418 Million Settlement

The association agreed to give home sellers the option of compensating agents.

Mar 15, 2024
U.S. Non-Bank Mortgage Lenders Surge Amid Industry Consolidation, Fitch Ratings Reports

As smaller players exit the market, scaled originators like UWM and PennyMac Financial dominate, but challenges persist with low origination volume and pressured margins amidst rising interest rates.

Mar 14, 2024