That’s how good the average fixed rate on a 30-year mortgage is now—the 15th record low this year, according to new data from Freddie Mac.
Mortgage rates continue to amaze in one of the few silver linings of the pandemic. In March, the rate hit its first record low of the year and in July it fell below 3% for the first time since Freddie Mac has kept track since the early 1970s.
Interest rates make an enormous difference in the affordability of a home. For example, a 30-year fixed-rate mortgage of $250,000 would cost $1,010 a month in principal and interest payments at today’s rates. But the same loan in 1981, when mortgage rates hit 18.63%, would have cost $3,896 a month.