Both homebuyers and homeowners are loving today’s record-breaking mortgage rates, which have been averaging less than 3% for the very first time. As rates have made history this month, mortgage applications have been rising.
Borrowers owe the Federal Reserve a big thank you for the plunging rates on new and refinance home loans, and Fed policymakers who meet this week could help push them even lower.
America’s central bank is expected to stick with and even sharpen its coronavirus-fighting policies that have driven interest rates down. Fed officials also are likely to spread more gloom about the economy — and when Fed chief Jerome Powell and his colleagues get grim, mortgage rates tend to drop.
What the Fed is likely to do
Let’s get this out of the way first thing: No one’s expecting the Fed’s policy panel to make any changes in interest