Interest rates collapsed this week as markets continued to absorb the impact of the spread of COVID-19.
On Tuesday, the U.S. Federal Reserve announced an emergency 0.5% rate cut in an attempt to get ahead of economic slowdowns caused by the virus. This was the first emergency action by the Fed since the 2008 financial crisis.
Alongside the drop in short-term rates, U.S. Treasury Bonds reached all-time low rates as investors scrambled to move their money out of the stock market. When there is high demand for bonds, buyers accept lower and lower interest rates, driving the rate for 30 Year Treasury Bonds to a record low of 1.22% on Friday morning.
As rates drop, borrowers benefit. For example, 30-year fixed rate mortgages hit an all-time low, approaching 3%, while rates for auto loans and credit cards are falling as well.