For the first time in history mortgage rates have gone to below 3%. This is the first time that this level has been achieved since 1971 when Freddie Mac began recording such data. According to Freddie Mac today (Thursday), the average rate for a 30-year fixed mortgage fell to 2.98%. This represents a decrease from the 3.03% reported last week.

This trend is not new; since the rates have been slowly but consistently going lower during the Chinese pandemic.

Concern certainly clouds the economic horizon with respect to the economy as it slowly but surely reopens.

One possible reason for the drop in mortgage rates can be attributed to the historic shortage of available homes for sale nationwide.

In many cases, especially in such states has New Jersey, where Counsellors Title provides title insurance services, the months supply of single-family homes in the state is just 3.7 months. Currently as of May 2020 there were just 24,736 on the market. This compares to 42,176 single-family homes on the market in the state for May 2019, a 41.4% decline.

According to some reports, why some buyers have stepped-back a bit is the concern over the economic recovery moving through this health crisis in America.

The drop in rates translates into approximately $100 off a monthly mortgage payment for current homeowners and homebuyers.

The other concern about lower mortgage rates is that buyers may be willing to spend more to buy a house which would have otherwise been out of their price range.

Mortgage rates rose just slightly by 5.1% as compared with the prior week. Currently the refinance market has increased its share of total mortgage activity, getting 64.2% of total applications, climbing from the 60.1% from the prior week.

If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.

Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.

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