First American Chief Economist Mark Fleming was interviewed on Yahoo! Finance earlier this month, discussing the impact of COVID-19 on the housing market and mortgage rates dropping below 3 percent for the first time ever.
“I think it’s an easy put to say that rates will stay at this level easily through the end of this year and likely for a lot of next year. We might even see mortgage rates even go below 2.98 percent to 2.9 or 2.8 percent in the coming months. There’s a floor there, probably around 2.5 percent. Rates are just not going to go much below that because people get paid for credit risk and other things out of that mortgage rate.”