Time to Refinance: Mortgage Rates Dip Back elow 3%

May 28, 2021

Ultra-low mortgage rates returned this week, with lenders offering home buyers and refinancers a chance once again to lock in a rate below 3%. But the National Association of REALTORS® warns that these low rates in the 2% range won’t last much longer, and mortgage rates likely will edge up soon. The 30-year fixed-rate mortgage averaged 2.95% this week, Freddie Mac reports.

“Mortgage rates are continuing to offer many homeowners the potential to refinance and increase their monthly cash flow,” says Sam Khater, Freddie Mac’s chief economist. Homeowners who refinanced their 30-year fixed-rate mortgage in 2020 saved more than $2,800 annually, Khater notes. “Substantial opportunity continues to exist today, as nearly $2 trillion in conforming mortgages have the ability to refinance and reduce their interest rate by at least half a percentage point.”

Freddie Mac reports the following national averages with mortgage rates for the week ending May 27:

  • 30-year fixed-rate mortgages: averaged 2.95%, with an average 0.7 point, dropping from last week’s 3% average. Last year at this time, 30-year rates averaged 3.15%.
  • 15-year fixed-rate mortgages: averaged 2.27%, with an average 0.6 point, falling from last week’s 2.29% average. A year ago, 15-year fixed-rate mortgages averaged 2.62%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.59%, with an average 0.2 point, unchanged from last week. A year ago, 5-year ARMs averaged 3.13%.

Freddie Mac reports average commitment rates along with average points to better reflect the total upfront cost of obtaining a mortgage.

 
 

Mortgage Rates Near 3% Again

April 16, 2021

The 30-year fixed-rate mortgage continued to drop this week, heading back near the 3% range.

The 30-year fixed-rate mortgage averaged 3.04% this week, Freddie mac reports. Mortgage rates are still below a year ago and remain at historical lows, which has proven a boon for the housing market, economists note.

“Mortgage rates took another dip this week as the 30-year fixed-rate mortgage decreased by almost ten basis points, week over week,” says Sam Khater, Freddie Mac’s chief economist. “The economy is improving on the demand side and on the supply side, a variety of goods and materials remain scarce. As a result of this imbalance, pricing pressures are building and causing inflation to rise. Despite the pause in mortgage rates recently, we expect them to increase modestly for the remainder of this year.”

Freddie Mac reports the following national averages with mortgage rates for the week ending April 15:

  • 30-year fixed-rate mortgages: averaged 3.04%, with an average 0.7 point, dropping from last week’s 3.13% average. Last year at this time, 30-year rates averaged 3.31%.
  • 15-year fixed-rate mortgages: averaged 2.35%, with an average 0.7 point, falling from last week’s 2.42% average. A year ago, 15-year rates averaged 2.80%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.80%, with an average 0.4 point, falling from last week’s 2.92%. A year ago, 5-year ARMs averaged 3.34%.

Freddie Mac reports average commitment rates along with average points to better reflect total upfront cost of obtaining the mortgage

 
 
 
 
 
 
 

Mark Wilmot Realtor® Compass Real Estate

Ventura/L.A. Counties

Lic#01733107 805-279-3038

www.BeachBumLiving.com/ www.MarkWilmot.com/ www.BeachBumHomes.com

 



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