According to the Mortgage Bankers Association (MBA), the average 30-year fixed-rate mortgage has been hovering around 3%, with some lenders offering rates as low as 2.75%. The average 15-year fixed rate mortgage is still at an all-time low of 2.48%.
As of October 14, 2020, the Freddie Mac Primary Mortgage Market Survey (PMMS) reported that the average 30-year fixed-rate mortgage decreased to 2.88%. This is a decrease from last week’s PMMS report which showed an average of 2.90%. For the 15-year fixed-rate mortgage, the average decreased to 2.46%. This is down from the previous week’s average of 2.47%.
The average 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) rate decreased slightly from 2.93% to 2.92%. According to the MBA, this is the lowest rate since December 2016. It is also lower than the 3.45% seen at the same time last year.
Additionally, the average 1-year Treasury-indexed ARM rate decreased from 2.68% to 2.67%. The MBA reported that this is the lowest rate ever recorded for this type of loan.
Refinancing activity remains steady over the past weeks, and with the low rates today, many homeowners are taking advantage of the opportunity to save money. According to the MBA’s Weekly Mortgage Applications Survey, refinancing activity was up 19.4% from the previous week. The survey also showed that overall mortgage applications increased by 10.1%.
Overall, mortgage and refinance rates are still at historic lows, making it a great time for those looking to purchase a home or to refinance their current loan. Rates are expected to remain fairly stable in the short term, but there is always the potential for them to change. Homebuyers and those looking to refinance should act quickly to take advantage of these favorable conditions.
Mortgage and refinance rates have been on a steady downward trend since the pandemic began in March 2020. The average 30-year fixed-rate mortgage has dropped from 3.77% in June 2020 to the current rate of 2.88%, and the average 15-year fixed-rate mortgage has decreased from 3.05% to 2.46%. These low rates have aided many people to purchase homes or to refinance their mortgage, and to keep their monthly payments low.
The Mortgage Bankers Association (MBA) noted that activity in the mortgage market remained strong through the pandemic due to the record-low mortgage rates, and that the number of refinancing applications increased since April 2020. Thousands of homeowners have taken advantage of these rates to reduce their monthly payments and to better manage their debt. The consistent low rates of the past few months have helped ease the burden of paying off a mortgage, and have enabled many people to build equity more quickly.
At the same time, the low-interest rates have reduced the amount of interest homeowners have to pay over the life of a home loan. This combination of lower interest rates and lower monthly payments has enabled many people to become homeowners who may not have otherwise been able to do so. Furthermore, the low rates have allowed those with existing home loans to save hundreds of dollars each month due to lower payments.
Overall, mortgage and refinance rates remain at historic lows, making today an opportune time for both homebuyers and those looking to refinance. With competitive rates, thousands of homeowners have been able to purchase or refinance a home and reduce their monthly payments. Low interest rates have also enabled people who otherwise could not afford to purchase a home to become homeowners, and those who already had a loan to save hundreds of dollars each month. Rates are expected to remain low in the short term, but potential future changes should be taken into consideration when deciding to purchase a home or refinance.
This article was contributed on Dec 22, 2023
