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Business and Economy

Average Rate On 30-Year Mortgage Hits Record Low

The average rate on a 30-year fixed mortgage has hit a record low, driven down by investors shifting money into the safety of U.S. Treasurys as the new coronavirus outbreak deepens.

The Federal Reserve made a surprise emergency cut in its benchmark interest rate to support the economy in the face of the spread of COVID-19.

Maine Association of Realtors President Tom Cole says mortgage rates are based on the 10 year Treasury Bond. He says 30 year mortgages at 3.25 percent are available, one of the best rates ever seen in Maine.

“The mortgage brokers that I work with, locally, have all indicated the same thing. They don't expect rates to go up. In fact they think that rates may go down a little bit.”

Cole says Maine is now seeing a lot more real estate activity, and that people who own properties are refinancing.