The Federal Reserve on Tuesday took the emergency step of cutting the benchmark U.S. interest rate by half a percentage point, an attempt to limit the economic and financial fallout from the coronavirus.
The U.S. central bank has not made a cut like this since late 2008, shortly
after the collapse of Lehman Brothers. Fed leaders believed it was wise to move quickly as concerns mount about the plunging stock market and a severe disruption in every major economy. Recession fears in the United States have spiked in recent days.
According to the latest data released Thursday by the federally chartered mortgage investor, the 30-year fixed-rate average sank to a new low of 3.29 percent with an average 0.7 point. (Points are fees paid to a lender equal to 1 percent of the loan amount and are in addition to the interest rate.) It was 3.45 percent a week ago and 4.41 percent a year ago.
The 30-year fixed rate, which started the year at 3.72 percent, has fallen 43 basis points in two months. (A basis point is 0.01 percentage point.) Its previous low was 3.31 percent in November 2012. At the start of 2000, the 30-year fixed-rate average was at 8.15 percent.
The 15-year fixed-rate average dropped to 2.79 percent with an average 0.7 point. It was 2.95 percent a week ago and 3.83 percent a year ago. The five-year adjustable rate average slipped to 3.18 percent with an average 0.2 point. It was 3.2 percent a week ago and 3.87 percent a year ago.
Securing your home mortgage with the lowest rate and payment amid such uncertainty may be a good idea for your family bottom line. If you are considering exploring your options, give us a call today to discuss what we can do for you.