Across the board, rates are adjusting slightly upward while still remaining below the 4% mark for a 30-year fixed mortgage rate. This is good news for those looking to purchase a home or refinance an existing one, as it keeps the cost of borrowing low and keeps homeowners’ payments affordable.
The average rate on a 30-year fixed-rate mortgage is 3.14% according to Freddie Mac—an 0.02% rise from last week. The 15-year fixed rate rose by 0.01%, to 2.60%. On top of this, adjustable-rate mortgages also have seen a slight increase of 0.02%, bringing their rates to 3.15%. While interest rates have risen slightly since last week, lenders remain competitive in terms of pricing.
Refinancing continues to be a popular option for homeowners, especially those who are looking to lower their payments or capture the equity they have built up in their home. Refinance rates remain low, with the average 30-year fixed-rate refinance loan at 3.13%. Refinancing could bring savings of hundreds of dollars each month, depending on the amount borrowed and the length of the loan.
The current mortgage and refinance rates combined with the low-cost lending availability make now a great time for anyone looking to buy a home or refinance an existing one. Home prices have been steadily increasing in recent months, yet the decrease in rates gives buyers the chance to lock in a reasonable loan rate and minimize the overall cost of buying a home.
For those interested in taking advantage of the low refinance rates, there are a few steps to take. Homeowners should contact lenders and compare rates to secure the best option for their financial situation. They should also consider any additional fees or costs associated with refinancing and decide whether this is the right move for them.
Overall, mortgage and refinance rates remain consistent as of May 2021. The average 30-year fixed-rate mortgage stands at 3.14%, with the 15-year fixed rate at 2.60% and adjustable-rate mortgages (ARMs) at 3.15%. Interested homeowners should consult their lender to find the best rate and payment plan for their particular financial situation. Those seeking to refinance their existing mortgage loans may be able to do so at a lower rate, resulting in potential savings in monthly payment costs. With mortgage and refinance rates still relatively low, now is the ideal time for prospective homeowners to purchase or refinance a home at a competitive rate.
This article was contributed on Dec 07, 2023