It’s happened. Long-term mortgage rates have dropped below 3%.

On Thursday, Freddie Mac reported 2.98% with an average 0.7 point on a 30-year mortgage, the first time that these long-term rates have fallen below 3%. In the early 1980s, rates hit 18% as the Federal Reserve raised rates to fight inflation.

“Mortgage rates fell below 3 percent for the first time in 50 years. The drop has led to increased homebuyer demand and, these low rates have been capitalized into asset prices in support of the financial markets,” Freddie Mac’s Sam Khater said in a release. “However, the countervailing force for the economy has been the rise in new virus cases which has caused the economic recovery to stagnate, and this economic pause puts many temporary layoffs at risk of ossifying into permanent job losses.”

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