Mortgage Rates Drop Back Below 3%

If there is an upside to all the pandemic-induced uncertainty in the economy, it’s the rock-bottom mortgage rate bonus for homeowners and homebuyers.

Today’s rate represents a decrease of 0.04 percentage points from last week’s 3.02%. Rates have been below 3% for five out of the last six weeks. During the same week last year, the 30-year rate was 3.07%.

The average rate for a 30-year fixed-rate mortgage dropped to 2.98% with 0.6 points paid for the week ending July 1.

Low rates should continue to fuel the strong demand among home buyers. The good news for them is that more sellers appear to be entering the market. That will give buyers more choices and should reduce competition for homes a bit, which could eventually help to slow the record price growth the market has seen in recent months.