Mortgage rates reached a new record low this week to average 2.86%, from 2.93% the prior week. That's the lowest level in the nearly 50 years of the mortgage survey. Given that mortgage rates usually track with the 10-year Treasury note, the spread between them is still above average. Thus, mortgage rates may fall further.

With these ultra-low mortgage rates, the real estate market is recovering faster than expected from the pandemic. Existing and new home sales have already ramped up to pre-pandemic levels.

Instant Reaction: Mortgage Rates, September 10, 2020