According to Freddie Mac's Primary Mortgage Market Survey, benchmark 30-year fixed mortgage rates are currently at 3.18%, with 15-year fixed mortgage rates at 2.60% and 5/1 ARM rates at 3.16%.
This slight dip in mortgage and refinance rates could be beneficial for current and potential homeowners. By locking in their mortgage rates, they may be able to get lower monthly payments. As such, some may be able to qualify for more home than they could have previously, and others may benefit from lower total loan costs.
In addition, this slight decrease in mortgage rates could potentially attract more borrowers to refinance. Refinancing a mortgage can help borrowers lower their monthly payments, reduce their term length, or even switch from an adjustable rate mortgage to a fixed-rate mortgage. Those who previously considered refinancing but had too high of rates may now consider it due to the recent dip in rates.
The current slight dip in mortgage and refinance rates could also benefit those who are considering taking out a home equity loan or line of credit. This is due to the fact that home equity lines of credit are typically based off the prime rate, which is directly linked to the Federal Funds Rate. The Federal Funds Rate has been kept low by the Federal Reserve due to the drop in mortgage and refinance rates, thereby potentially resulting in lower interest rates for those interested in taking out a home equity loan or line of credit.
Overall, this slight dip in mortgage and refinance rates could benefit potential and existing homeowners in a variety of ways, depending on their individual financial situation. It may offer those who are considering taking out a mortgage or refinancing an opportunity to get better terms. Additionally, those who are looking to take out a home equity loan or line of credit may also see lower interest rates due to the Federal Funds Rate being kept low.
The current market conditions suggest that mortgage and refinance rates are likely to remain low in the near future. As such, anyone considering taking out a mortgage or refinancing should act quickly to take advantage of these lower rates.
Today, April 20, 2021, mortgage and refinance rates took a slight dip compared to the day before according to Freddie Mac’s Primary Mortgage Market Survey. Benchmark 30-year fixed mortgage rates are currently at 3.18%, with 15-year fixed mortgage rates at 2.60% and 5/1 ARM rates at 3.16%. This minor decrease in mortgage and refinance rates can offer numerous benefits to current and potential homeowners.
For those borrowing a mortgage, this slight decrease in interest rates could make it more affordable to purchase a home, allowing them to qualify for more home than they could have previously and reduce total loan costs. Those thinking about refinancing their mortgage may now find it beneficial as well, since they would be able to lower their monthly payments, reduce their term length, or even exchange an adjustable rate mortgage for a fixed-rate mortgage.
Those considering taking out a home equity loan or line of credit may also benefit from the current dip in mortgage and refinance rates. Since these loans are typically based off the prime rate, which is linked to the Federal Funds Rate, a drop in the Federal Funds Rate due to the lower mortgage and refinance rates may result in lower interest rates for those interested in taking out a home equity loan or line of credit.
Given these current trends, it is likely that mortgage and refinance rates will remain low for the foreseeable future, making it a potentially advantageous opportunity for those looking to buy a home or refinance their current mortgage. Those looking to take advantage of this opportunity should do so soon to secure the best possible terms.
This article was contributed on Oct 17, 2023
