March 26, 2020 - MCLEAN, Va. – Mortgage rates fell a notable amount this week, according to the weekly survey conducted by Freddie Mac. The 30-year, fixed-rate mortgage average 3.5%, down from prior week’s 3.65%.

“The Federal Reserve’s swift and significant efforts to stabilize the market were much needed and helped mortgage rates drop for the first time in three weeks,” says Sam Khater, Freddie Mac’s chief economist.

“Similar to other segments of the economy, real estate demand is softening,” he adds. “However, the combination of the Fed’s actions and pending economic stimulus will provide substantial support to the mortgage markets.”

The 30-year FRM average 0.7 points for the week ending March 26, 2020. A year ago at this time, the FRM averaged 4.06%.

The 15-year, fixed-rate mortgage average 2.92% with an average 0.6 points. A year ago it average 3.57%.

Adjustable-rate mortgages – the 5-year Treasury-indexed hybrid – average 3.34% this week with an average 0.3 points, an increase from last week’s 3.11%. A year ago, the ARM averaged 3.75%.

"Mortgage rates will go lower. [And] that's good news for buyers," says realtor.com®'s chief economist, Danielle Hale. "It’s probably enough, based on what we know now, to keep buyers in the market. It’s also going to help people refinance and have more cash in their pockets."

Rates hit a low of 3.29% on March 5, according to Freddie Mac. That's as low as they've been since Freddie Mac began tracking mortgage interest rates in 1971—nearly 50 years ago.

Many have been able to shave hundreds of dollars off their monthly mortgage payments and tens of thousands of dollars off the life of their 30-year loans. Many overwhelmed mortgage lenders responded by upping rates to keep the flood of refinances at bay.

Some experts expect rates to fall into the 3.1% to 3.2% range within the next few weeks and stay within or under the mid-3% stretch through the rest of the year.

"Today's low mortgage rates are equivalent, in some cases, to $30,000 off the price of a home" in some of the nation's most expensive markets, says Wolf. In Los Angeles, rates around 3.6% can bring monthly mortgage payments down to what they were in 2015. "Mortgage rates are turning back time on affordability.”

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