Downturn gives homeowners more time to refinance and lower their interest rate, says economist
The benchmark US mortgage rate has slid back again this week after rising to 3% a week ago.
According to the Freddie Mac Primary Mortgage Market Survey, the average 30-year fixed-rate mortgage fell five basis points to 2.95%, giving borrowers more time to lock in a mortgage rate or refinance.
“Mortgage rates are down below three percent, continuing to offer many homeowners the potential to refinance and increase their monthly cash flow,” said Sam Khater, Freddie Mac’s chief economist.
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Khater noted that homeowners who refinanced their 30-year fixed-rate mortgage last year saved more than $2,800 annually.
“Substantial opportunity continues to exist today, as nearly $2 trillion in conforming mortgages have the ability to refinance and reduce their interest rate by at least half a percentage point,” he said.
The 15-year fixed-rate mortgage posted a 2-basis-point drop, down to 2.27%. Meanwhile, the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) remains unchanged at 2.59%.
