Mortgage rates have dropped to record lows on eight separate occasions in 2020 (5 in less than three months) as the coronavirus pandemic has roiled the global economy. But could they eventually drop to 0%? Well, if past precedent is any indication, there’s indeed a chance.
In Denmark, Jyske Bank JYSK, 2.05% began offering a 10-year fixed-rate mortgage at negative 0.5% last year, and Finland-based Nordea Bank announced around the same time that it was offering a 20-year fixed-rate mortgage in Denmark that charges no interest.
Can it happen in the US as well? Don’t bet on that. Most economists expect mortgage rates will bottom in August and then start rising again, just before 2020 election.
But a 0% mortgage isn’t a fantasy. Find out more: https://www.marketwatch.com/story/mortgage-rates-keeping-falling-so-will-they-finally-drop-to-0-2020-08-13