The Pandemic Gives Borrowers a Break on Rates

Low rates reduce the cost of mortgages and other loans.

As the coronavirus scare pushed the 10-year Treasury note to an all-time low and the Fed slashed the federal funds rate, interest rates for consumer loans also fell, creating money-saving opportunities for smart borrowers.

In early March, the 30-year fixed-rate mortgage stood at 3.36%, and the 15-year fixed mortgage averaged 2.8%. Those are the lowest rates ever recorded in Freddie Mac’s survey, which dates back to 1971. But rates ticked up as mortgage brokers struggled to keep up with demand for refinancing, and many lenders chose to keep rates higher than they would ordinarily be based on the level of the 10-year Treasury.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Sandra Block
Senior Editor, Kiplinger's Personal Finance

Block joined Kiplinger in June 2012 from USA Today, where she was a reporter and personal finance columnist for more than 15 years. Prior to that, she worked for the Akron Beacon-Journal and Dow Jones Newswires. In 1993, she was a Knight-Bagehot fellow in economics and business journalism at the Columbia University Graduate School of Journalism. She has a BA in communications from Bethany College in Bethany, W.Va.