According to Freddie Mac, the average 30-year fixed mortgage rate dropped from 2.73% to 2.71%. This represents a 0.02 percentage point decrease, but overall, rates are still near historic lows.
The 15-year fixed-rate mortgage saw a larger drop, from 2.28% to 2.24%, representing a more significant 0.04 percentage point decrease. The 5-year adjustable rate mortgage (ARM) rate has stayed the same at 2.79% for the past two weeks, with no change.
Refinance rates have also seen a slight decrease. As of February 1, the average 30-year refinance rate is 3.04%, which is a 0.02 percentage point decrease from last week. The 15-year fixed rate has dropped from 2.46% to 2.41%, a 0.05 percentage point decrease.
Despite these decreases, rates are still relatively low compared to recent years. Refinancing rates are still considerably lower than before the pandemic, when they averaged about 3.65%. This means that homeowners who are looking to refinance may be able to save hundreds of dollars per month and potentially tens of thousands of dollars over the life of their loans.
For borrowers who are looking to purchase a home, now may be an ideal time to do so due to the low mortgage rates. Home buyers can take advantage of the low rates and potentially qualify for more loan money or lower monthly payments.
The low rates could keep the housing market stable in the coming months, especially as there is already a shortage of homes for sale. If fewer people are put off by high mortgage rates, it could keep the housing market competitive and help maintain a healthy balance between buyers and sellers.
Overall, mortgage and refinancing rates have decreased slightly since the start of 2021, but remain near historic lows. Refinancing could save homeowners money on their loans, while also providing home buyers with an opportunity to secure a loan at a low rate. These low rates could help keep the housing market stable and help keep a healthy balance between buyers and sellers in the coming months.
This article was contributed on Nov 14, 2023