Freddie Mac announced two things on Thursday that many in the mortgage industry never expected to hear:

1) Long-term rates dropped to 3.07%, their lowest level on record and

2) There is the likelihood that rates could go below 3% later this year.

“Mortgage rates continue to slowly drift downward with a distinct possibility that the average 30-year fixed-rate mortgage could dip below 3 percent later this year,” Freddie Mac’s Sam Khater said in a release. “On the economic front, incoming data suggest the rebound in economic activity has paused in the last couple of weeks with modest declines in consumer spending and a pullback in purchase activity.”

The UrbanTurf Mortgage Rate Disclaimer: The rates reported by Freddie Mac for 30-year mortgages are usually the best rates that the most qualified borrowers can get, so borrowers or those considering refinancing should not necessarily read this news and think that they can go out and get a loan with the quoted interest rate.

 

SOURCE: UrbanTurf