Mortgage rates plunge below 3%, setting a new record low amid growing fears of a 2nd coronavirus wave

• The average rate on the 30-year fixed mortgage fell to a record low of 2.94% Thursday, according to Mortgage News Daily.
• It's the first time that the rate has ever fallen below 3%.
• The rate, which had recently edged higher, fell amid a broader market sell-off as fears of a second wave of coronavirus cases mount.
• Read more on Business insider.

Mortgage rates, which just last week were edging higher, hit a fresh low amid a broad market sell-off on fears that a second wave of coronavirus cases is growing in the US.

The average rate on the 30-year fixed mortgage fell to 2.94% on Thursday, according to Mortgage News Daily. It's the first time the rate has ever fallen below 3%. The rate — which loosely takes its cues from the 10 year US Treasury — was weighed down Thursday when investors sold stocks in favor of bonds, considered safer assets.

Stocks tumbled Thursday following Federal Reserve Chair Jerome Powell's cautious tone about the US economic recovery following coronavirus lockdowns. The Fed expects that unemployment will remain elevated for years, and that the road to recovery will be a long one.

Read more: We spoke to 3 financial experts, who broke down why you should buy these 13 ETFs to maximize stock-market returns right now

In addition, as states across the country reopen, new coronavirus cases have been increasing, sparking fears of a second wave that could further devastate the economy. Cases have jumped in Texas, Florida, Arizona, and California, pushing the US total above 2 million.

Mortgage rates held around 3% for most of May but ticked higher when the jobs report was much better than expected.

Low rates have helped fuel a swift rebound in the housing market. Last week, mortgage applications to purchase a home jumped 13% on the year, according to the Mortgage Bankers Association.