The average rate on a 30-year fixed rate mortgage sits at 2.765%, with point no points according to Freddie Mac. Last week, the average rate was 2.80%. Rates have steadily been decreasing since mid-November when they were around 3.0%.
On the other hand, the average rate on a 15-year fixed rate mortgage stands at 2.396%. This number has also gone down from last week’s 2.44%. For those well-qualified borrowers applying for an adjustable rate mortgage, the average interest rate is currently 2.867%.
Mortgage refinancing continues to be an option for current owners who want to lower their monthly payments, especially when rates are so low. A cash-out refinance could also provide owners with extra funds that can be used to make home improvements or to consolidate debt.
As of December 26th, 2020, mortgage and refinance interest rates are at a record low. Mortgage rates have decreased steadily since mid-November, with 30 year fixed rate mortgages sitting at an average rate of 2.765%. That is well below the average rate of around 3.0% in November. 15-year fixed rate mortgages are even lower, with an average rate of 2.396%. Those who are well-qualified and can qualify for an adjustable rate mortgage can expect to receive an average rate of 2.867%.
These low interest rates make it an opportune time for people interested in buying a house or refinancing their current mortgage to try to lock in a great rate. With current mortgage and refinance rates so low, homeowners can consider taking out cash-out refinance loans to make home improvements or consolidate debt. In either case, homeowners should make sure they are well informed of all their options before deciding whether to take out a loan. Ultimately, with such low rates, now is a great time for people to take advantage of the low rates and begin the process of purchasing or refinancing a home.
This article was contributed on Nov 03, 2023
