Mortgage rates drop to 3-year low

The average U.S. rate for a 30-year fixed mortgage this week fell to a three-year low of 3.45% as worries about coronavirus drove investors into the U.S. bond markets. That’s the lowest rate since 3.42% in the first week of October 2016 and it’s almost a full percentage point below the 4.41% recorded a year earlier, according to the Freddie Mac report. Investors are piling into U.S. bonds as a safe haven while the world weighs the possible economic implications of the coronavirus pandemic that has infected more than 20,000 people, primarily in China. The increase in competition for bonds, including mortgage-backed securities, squeezes yields and drives mortgage rates lower.

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