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Published: Jul 16, 2020 4 min read
Kiersten Essenpreis for Money

The average rate on American’s favorite home loan just dropped below 3% for the first time. That’s the lowest average since Freddie Mac began tracking rates five-decades ago. It’s also the seventh record this year and marks a new low for every week in July so far.

Record low rates have already set off a refinancing boom with applications more than doubling from last year. Buyers are also flooding the market, though a lack of new listings has led to bidding wars and higher home prices in many places. A deal is a deal. Borrowers are right to be pleased and shopping—but history and some basic math indicate rates could be even lower.