Long-term mortgage rates tumble to record low as coronavirus rattles investor nerves

• The average 30-year fixed-rate mortgage fell to 3.29% from 3.45% this week, according to data published on Thursday by Freddie Mac.
• It's the lowest rate in nearly 50 years of tracking, according to the report.
• Mortgage rates loosely follow US Treasury bond yields, which have also fallen to new lows as investors rush to buy the safe-haven assets amid panic that a coronavirus outbreak will hurt the US economy.
• Read more on Business Insider.

Potential homeowners are getting a boost as the coronavirus outbreak pushes down interest rates.

The average 30-year fixed-rate mortgage fell to 3.29% from 3.45% this week, data published on Thursday by Freddie Mac showed. It's the lowest in nearly 50 years of tracking, according to the report. The previous low was 3.31% in November.

Mortgage rates have plummeted as they take cues from long-term US Treasury bond yields. As panic has grown about a coronavirus outbreak in the US, investors have been rushing to snap up safe-haven assets, pushing yields on 10-year and 30-year US Treasury bonds to record lows.

"Given these strong indicators in rates and sales, as well as recent increases in new construction, it's clear the housing market continues to be a positive force for the broader economy," Freddie Mac said in a statement.

The housing market is one of the few areas that benefit from low rates. Mortgage applications grew by 10% in the last week from a year earlier and show no sign of slowing, according to Freddie Mac's report. And refinancing applications surged by 26% in the past week, according to data from the Mortgage Bankers Association.

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It's possible that mortgage rates will fall further. On Tuesday, the Federal Reserve moved interest rates lower in an emergency cut to combat the effects a coronavirus outbreak could have on the US economy. It was the first cut of its kind since the financial crisis.

Still, stocks continued to slide on Thursday and bonds surged, sending yields down and showing that investors are still worried about a coronavirus epidemic.