President Trump Signs $2.2T Stimulus Package
March 27, 2020
Friday afternoon, President Donald Trump signed into law the historic $2.2 trillion COVID-19 rescue package.
The Coronavirus Aid, Relief, and Economic Security Act contains numerous benefits for REALTORS® and consumers that NAR fought hard for during the past three weeks, including unemployment eligibility for the self-employed and independent contractors; unprecedented aid for small businesses; and a delay in business payroll tax payments. NAR has compiled a comprehensive guide to all benefits for REALTORS® and their customers found in this legislation.
Meanwhile, the Fed's move to buying mortgage-backed securities gave the market another boost, bringing mortgage interest rates down. After several weeks of increases, the 30-year fixed-rate mortgage eased this week, averaging 3.50%. Despite the upticks over recent weeks, borrowing costs continue to hover near historical lows.
“The Federal Reserve’s swift and significant efforts to stabilize the market were much needed and helped mortgage rates drop for the first time in three weeks,” says Sam Khater, Freddie Mac’s chief economist. “The combination of the Fed’s actions and pending economic stimulus will provide substantial support to the mortgage markets.”
Freddie Mac reports the following national averages with mortgage rates for the week ending March 26:
- 30-year fixed-rate mortgages: averaged 3.50%, with an average 0.7 point, falling from last week’s 3.65% average. Last year at this time, 30-year rates averaged 4.06%.
- 15-year fixed-rate mortgages: averaged 2.92%, with an average 0.6 point, falling from last week’s 3.06% average. A year ago, 15-year rates averaged 3.57%.
- 5-year hybrid adjustable-rate mortgages: averaged 3.34%, with an average 0.3 point, rising from last week’s 3.11% average. A year ago, 5-year ARMs averaged 3.75%.
Updated: June 04, 2020