Fed Drives Rates On Home Loans To Record Lows – NMP
Industry News

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,"
A headshot of Navi Persaud
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
A headshot of Navi Persaud
Director of Events
Navi Persaud is Director of Events at NMP.
Link copied
Published
May 20, 2020
Get the NMP Daily
Regulation and Compliance
CFPB Closes 40% Of Investigations, Keeps Mortgage Enforcement In Focus

The federal watchdog closed thousands of supervisory and investigative matters as it narrowed oversight

The Consumer Financial Protection Bureau (CFPB) closed 66 of its 80 open examinations and 86% of outstanding supervisory actions as part of a sweeping overhaul of federal oversight, according to its latest report to Congress.The figures, disclosed in the bureau's semiannual ...

Continue reading
Tech
Gateway Taps ICE For Servicing Overhaul After $2.4B MSR Sale

The lender is consolidating servicing operations on ICE's MSP platform after disclosing regulatory capital constraints that have limited its ability to retain MSRss.

Gateway Mortgage is moving its servicing operations onto Intercontinental Exchange's (ICE) MSP platform, a technology investment that follows the lender's disclosure earlier this year that regulatory capital requirements had forced it to sell billions of dollars in mortgage ...

Continue reading
Renew your NMLS License — for free.

Enjoy access to a free NMLS renewal class when you attend an in-person event.

Find an event
More from
Industry News
Fed Holds Rates, But Pricing Pressures Persist

Rising Treasury yields and fresh inflation data complicate rate locks, borrower qualification, and lender margins as markets anticipate another hike in December

Industry News
Oct 29, 2026
Zippy Adds Capital For Manufactured-Home Lending Push

The $20 million investment from Saluda Grade will support expansion beyond 27 states and new loan products across wholesale, retail, and community channels

Industry News
Oct 16, 2026
Inflation Hits 3.7%, Putting Mortgage Rate Relief At Risk

September’s inflation pickup puts recent rate improvements at risk, potentially eroding affordability gains from lower home prices and seller concessions

Industry News
Oct 14, 2026
PLACE Acquires Ardley, Expanding Push To Turn Existing Borrowers Into New Loans

The latest deal connects borrower retention technology with Maxwell's origination platform and PLACE's real estate network, creating new opportunities for lenders

Industry News
Oct 09, 2026
Equifax, TransUnion Launch New Tools To Cut Credit Report Costs

Both bureaus introduce ways to purchase credit scores separately from reports, while Equifax reports growing VantageScore adoption and extends $1 pricing through 2028

Industry News
Oct 09, 2026
Newrez, eXp Realty Form Joint Venture To Target Purchase Business

Revenos Mortgage is set to launch in early 2027, replacing eXp's joint venture with Kind Lending

Industry News
Oct 08, 2026