The 30-year fixed mortgage rate dipped to 2.90%, while the 15-year fixed mortgage rate dropped to 2.39%. The 5-year adjustable rate mortgage (ARM) remained steady at 2.84%.
The current mortgage and refinance rates offer a viable opportunity for those looking to buy or refinance a home. Compared to last year's average of 4.0%, the 30-year fixed mortgage rate has been reduced by almost 1.1%. This is a considerable drop in the overall cost of borrowing, creating attractive opportunities for potential homeowners or those who are currently refinancing their mortgages.
The 5-year adjustable rate mortgage (ARM) staying the same also presents potential homeowners with an enticing option. Not only will borrowers likely qualify for a lower interest rate, but they can also benefit from a shorter loan term. ARMs generally provide lower monthly payments and potentially more flexibility when it comes to budgeting.
In addition, the 15-year fixed mortgage rate has dropped to 2.39%, making it slightly less expensive than the 30-year fixed mortgage rate. The 15-year fixed mortgage rate offers the benefits of a fixed-rate loan without the higher interest rate associated with a 30-year mortgage. This option may appeal to individuals who want to get rid of their debt quickly.
Overall, the current mortgage and refinance rates provide homeowners with several viable options for buying or refinancing a home. The 30-year fixed mortgage rate has dropped significantly since last year, while both the 5-year ARM and 15-year fixed mortgage rate offer more flexibility for borrowers. As such, now may be the perfect time to secure a new mortgage or refinance an existing one.
Mortgage and refinance rates have been on a roller coaster ride in 2020. At the beginning of the year, the 30-year fixed rate was hovering just above 3.5%, though it began climbing in February as the COVID-19 pandemic rattled the economy. Mortgage rates reached an all-time low in March, however, as rates dipped below 3%. This was due to the Federal Reserve’s aggressive foray into the bond market, as well as the immense amount of government stimulus.
Since then, mortgage rates have continued to decline, though at a much slower pace. Mortgage rates are computed based on economic performance and other market forces, and the uncertainty surrounding the coronavirus pandemic has kept potential buyers on the sidelines. As a result, mortgage rates have remained relatively stable over the past few months.
As of October 20th, 2020, the 30-year fixed mortgage rate sits at 2.90%, while the 15-year fixed mortgage rate has dropped to 2.39%. The 5-year ARM has been steady at 2.84%. This presents a great opportunity for those looking to enter the housing market or those hoping to refinance their existing loan.
The possibilities created by these current rates speak to the long-term impact of the coronavirus pandemic. Many homeowners and potential buyers will be able to save substantial amounts of money on their mortgage, with the possibility of getting even better rates if they choose to refinance. It is also important to note that the current mortgage rate environment should not be taken for granted, as those rates could rise at any moment.
Given the current mortgage and refinance rates, now might be a great time for individuals to take advantage of the opportunities that the coronavirus pandemic has presented. With historically low interest rates, prospective buyers may qualify for a better loan than they would have been able to obtain in the past. Homeowners may also benefit from refinancing their loan in order to take advantage of the lower mortgage and refinance rates.
Overall, mortgage and refinance rates have been declining since the spring of 2020, and they remain at very attractive levels as of October 20th, 2020. The 30-year fixed mortgage rate has dropped to 2.90%, while the 15-year fixed mortgage rate has dropped to 2.39%. The 5-year ARM has been steady at 2.84%. Such rates present great opportunities for those looking to purchase a new home or refinance an existing loan. However, mortgage and refinance rates can change quickly, so those who are interested should take advantage of the current situation sooner rather than later.
Mortgage and refinance rates in the U.S. have been in a state of flux since the start of the COVID-19 pandemic. The Federal Reserve’s aggressive foray into the bond market paired with unprecedented amounts of stimulus have led to mortgage rates reaching their lowest level since the spring of 2020. As of October 20th, 2020, the 30-year fixed mortgage rate stands at 2.90%, while the 15-year fixed mortgage rate is at 2.39%. The 5-year ARM has been steady at 2.84%.
These very attractive rates present potential buyers and homeowners with the chance to save substantial amounts of money in comparison to what they would have paid before the pandemic. However, it is important to note that these rates could rise again, so those who are interested should move quickly to take advantage of the opportunity at hand. Mortgage and refinance rates are a great way for people to improve their financial wellbeing, and now may be the perfect time to do so.
This article was contributed on Jul 29, 2023