Mortgage interest rates fell further this week, falling to levels seen at the start of the year, according to the latest Freddie Mac Primary Mortgage Market survey.
The average rate on the 30-year fixed mortgage has fallen to 2.77%, and Freddie Mac’s chief economist Sam Khater said that was good news for homeowners looking to buy a new home. , renovate or refinance.
“With the global market uncertainty surrounding the Delta variant of COVID-19, we have seen 10-year Treasury yields decline and as a result mortgage rates have followed suit,” Khater said, adding that the rate fixed at 15 years remained historically low.
Maybe now is the perfect time to refinance your mortgage because of these record high rates. By shopping, you could save hundreds on your monthly payments. Fortunately, Credible makes it simple; click here to view refinancing rates featured today and view home loans based on APR, fees, and monthly payments based on your loan amount.
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How much have interest rates fallen?
The average 30-year fixed-rate mortgage fell from 2.8% last week to 2.77% for the week ending August 5, down from 2.88% last year.
The 15-year fixed rate mortgage was unchanged from last week at 2.1%, but was down from 2.44% last year. The five-year Treasury-indexed variable-rate hybrid (ARM) mortgage also fell to 2.4%, from 2.45% last week. Last year, the 5-year MRA was 2.9%.
To find the best mortgage rate, start by using Credible. Credible can show you the current mortgage rates of several lenders and help you make an informed decision about your home loan.
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Why is now a good time to refinance?
Mortgage rates are at their lowest level in about a year, but one mortgage billionaire said consumers are in fact hitting all-time lows.
“You’ll have someone say to me, ‘No they’re not, interest rates aren’t at their lowest. They were lower in July or August of last year ”. But that’s not the reality as the primary and secondary spreads were wider back then, which meant consumers weren’t getting such low rates, ”said Mat Ishbia, President and CEO of United Wholesale Mortgage (UWM). “Right now, today, consumers are enjoying a lower rate than they ever got in 2020.”
Such low rates can save borrowers hundreds on their monthly payments through refinancing. In addition, house prices are also increasing. June’s national growth rate of 17.2% was the highest since the late 1970s, according to CoreLogic House Price Index Report.
Homeowners who refinance can withdraw extra money from their home and use the funds for home improvement projects or to pay off a large amount–interest debt. If you’re ready to get started or want to learn more, contact Credible to speak with a mortgage expert and get all of your questions answered.
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