Mortgage Rates Fall to Record Low, But Buyers Wait on Sidelines
August 5, 2020
The average rate for a 30-year fixed mortgage fell to a record low of 3.14% this week, down from 3.20% last week. Despite the new low, buyers seem to be sitting on the sidelines. While current owners are taking advantage of the low rates by refinancing in big numbers, the number of purchase applications was down from the previous week, according to the Mortgage Bankers Association.
Strong demand in the spring looks to be waning somewhat. The market still faces historically low supply, especially for entry-level homes, and affordability continues to hinder the market.
Analysts expect that the mortgage rate could fall even further depending on the financial data, particularly the jobs numbers, that will be released later in the week.