Mortgage

Are mortgage rates about to fall below 3%?

One prominent lender is already offering sub-3% rates

arrow down

Until about three months ago, it was basically unthinkable that interest rates would ever fall below their record low of 3.31%, which was set in November 2012. But then the coronavirus happened.

And as the virus was wreaking havoc on the world and its economy, interest rates not only broke that record; they’ve since settled comfortably below the previous all-time record level and stayed under 3.3% for three straight weeks.

But is it possible that interest rates are on the verge of falling to levels no one ever thought they’d see: under 3%?

The short answer: Absolutely.

In fact, one of the biggest lenders in the country is already offering interest rates as low as 2.5% to certain borrowers.

Last week, United Wholesale Mortgage made national news when it announced that it would be offering interest rates as low as 2.5%. Never before had a lender as big as UWM, the country’s biggest purchase mortgage lender and largest wholesale lender, offered rates that low.

Given that, the program made waves both inside and outside of the mortgage business.

Some mortgage brokers quickly and vociferously stated that UWM’s announcement was nothing more than empty words, suggesting that borrowers wouldn’t be able to get the low rates that UWM was touting.

The rest of this content is for HW+ members. Join today with an HW+ Membership! Use discount code “HWplusweek” for $150 off. Already a member? log in

Most Popular Articles

Mortgage rate drops to within 1 basis point of all-time low

The average U.S. rate for a 30-year fixed mortgage dropped to within one basis point of an all-time low this week, according to Freddie Mac. The rate fell to 3.24% from 3.28% last week.

May 21, 2020 By

Latest Articles

Introducing HousingWire’s 2020 Class of Rising Stars

This year’s class of Rising Stars celebrates 50 young innovators moving the housing industry forward. Coming from all sectors of housing – mortgage, real estate, fintech, servicing and more, these up-and-coming leaders are blazing their own trail. The norm is no longer good enough.

May 23, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please