Mortgage Rate in the United States Fell below 3 % for the First Time in History
OREANDA-NEWS. The rate on a mortgage loan with a maturity of 30 years in the USA fell for the first time in history to a record low of 2.98 %. This is evidenced by data published by one of the largest American mortgage agencies Freddie Mac, which has been registering the value of the indicator since 1971.
As the agency notes, the rate cut is explained by the economic crisis in the country caused by the coronavirus pandemic. In January, the mortgage rate was 3.72 %, and in July of last year 3.81 %.
The 15 year mortgage rate dropped to 2.48 %.The situation with the wide spread of COVID-19 has forced the US Federal Reserve System to reduce the interest rate to 0–0.25 % per annum to stimulate economic growth. Fed Chairman Jerome Powell emphasized that the country’s gross domestic product in the second quarter of 2020 may decrease by 20–30 %.