When people look back on the tumultuous 2020 economic landscape, they might pause a moment to check out home mortgage rates. Over the last three months, these rates have managed to achieve five (!) all-time lows. Currently (weekly averages for the week of 7/30/2020), Freddie Mac, which buys mortgages from banks, reports an average 2.99% rate on 30-year fixed-rate mortgages.
There has been a remarkable downward trend in mortgages from late 2018 through the end of July. To put things in perspective, compare todays rates to 18% fixed-rates back in the early 1980s, or 5% as recently as 18 months ago. Today’s low rates are pretty extraordinary.
Does that mean that most people should be refinancing their home loans? That depends on a number of factors, including their current mortgage rate and how long they expect to own their house. But it may be worth exploring, sooner rather than later.
This article was written by an independent writer for Brewster Financial Planning LLC and is not intended as individualized legal or investment advice.