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The economy is slowly creeping back after COVID-19's most impactful months. However, the threat of a second wave still looms and it is one that Federal Reserve Chairman Jerome Powell fears could cause a longer recovery, especially within the mortgage industry.
A MoneyWise report revealed that Powell is still concerned about the future of the economy and his outlook isn't positive. Much of what has been put forth by Powell, the report said, caused mortgage rates to continue to dip. Now, it is possible that they hit newer all-time lows, which would be good news for buyers and existing homeowners who could save by refinancing their mortgage.
"A full recovery of the economy will really depend on people being confident that it’s safe to go out," the chairman said during a recent Princeton University webinar, according to the report. "A second wave would really undermine public confidence, and might make for a significantly longer recovery, and weaker recovery."
With the current pattern between Powell's words and their effect on mortgage rates, the report predicts they may continue the downward trend they have been carrying. As of last week, Freddie Mac reported that the 30-year fixed-rate mortgage had hit 3.15%, though, rates sub-3% do exist.
Click here to read more about the Fed chair's outlook on the future of the economy.
