The lowest mortgage rates ever occurred around Thanksgiving 2012, when the interest rate for a 30-year fixed-rate mortgage fell to 3.31% (according to Freddie Mac data). However, rising panic over the coronavirus could drive rates to lows never seen before.
The signs of record lows for mortgage rates are already emerging, with the yield on the benchmark 10-year U.S. Treasury note falling to its lowest level ever during Tuesday’s trading.
In fact, several lenders have said that they have never seen borrowers get mortgage rates as low as they are getting right now.
So, what’s behind the potential record lows for interest rates? Blame the coronavirus.
Fears of corona virus are causing mortgage rates to fall by sinking stocks and boosting bonds. According to the WSJ, the yield on the 10-year T-Note, which serves as a benchmark for mortgages and other borrowing rates, fell to an all-tome low due to fears over the outbreak impacting the global economy.