Fears of Coronavirus Drive 30-Year Fixed Rates Down to an 8-Year Low

Fears of an economic slowdown drove down mortgage rates to an average of 3.23 percent, substantially lower than the average of 4.47 percent on February 28, 2019, according to Mortgage News Daily. Additionally, the latest rates on the 30-year fixed mortgage are the lowest they’ve since September 2012, when it briefly hit 3.15%.

Mortgage rates take their direction from US Treasury yields, which have fallen to record lows as fears that coronavirus will stall global growth push investors into safe-haven assets. On Friday, the yield on the benchmark 10-year US Treasury fell to an all-time low of 1.15%.