Mortgage Interest Rates Hit Lowest Levels in 50 Years. Will They Go Lower?

How low can mortgage interest rates go? With the downward pressure of the coronavirus and plummeting stock market, the already-low rates are dipping further than even the Great Recession. Rates have hit the lowest levels in nearly 50 years, but even experts are unsure if the rates will continue falling. But some financial experts warn that homeowners should not wait for them to dip again: Once they coronavirus fears abate, they expect the market will rise again. If they lock in the current low rates, homeowners can save over $50,000 over the mortgage’s lifetime.

One of the few bright spots in the coronavirus/stock market panic is that mortgage interest rates have fallen to their lowest levels in nearly 50 years, lower than during the Great Recession. That's quite a windfall for home buyers, as well as for homeowners hoping to cut down on their monthly loan payments. And yet, some are wondering whether rates could go even lower. After all, who wants to leave money on the table?

Real estate experts are divided on whether rates will continue to decline. Some believe they'll dip into the low-to-middle 2% range. Others say rates have already bottomed out. And some believe we're in such uncertain times—with a potential recession looming—that there's no telling in which direction rates will head next.

"We’re in uncharted territory, so you can’t look to history as a guide to what could happen. It's hard to predict how mortgage rates will react," says realtor.com's chief economist, Danielle Hale. "I don't think they'll go up until it's pretty clear we're out of the woods. They might move sideways, or they might go down more slowly."

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