Mortgage rates drop to nearly all-time low

Local News

The average 30-year rate dropped to a new record low of less than 3.3% on Thursday

(WKBN) – Mortgage rates are near an all-time low, and the worry about coronavirus is part of the reason why.

The average 30-year rate dropped to a new record low of less than 3.3% on Thursday. Mortgage rates are a full percentage point lower than they were a year ago.

Lower rates mean homeowners pay less for their total loan.

“We’re going to see an avalanche of refinancing in the U.S. We’re probably going to see home prices continue to go up in the U.S., and we’re going to see lots of housing activity this spring. So for the average homeowner, you’ve got to dust off those mortgages again. Get them out, see what the current rates are. They’re at 150-year lows,” said John Augustine from Huntington Bank.

As lower rates usually lead to refinancing, mortgage applications were up 10% last year compared to a year ago.

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Trending on WKBN.com