Mortgage Rates Drop to Lowest Level in Nearly Three Years

Source: http://www.freddiemac.com/pmms/

Why Now May Be An Attractive Time to Refinance

With mortgage rates reportedly at their lowest in nearly three years, now may be an attractive time to refinance that mortgage.

Last week, mortgage giant Freddie Mac reported that the U.S. weekly average for the 30-year Fixed-Rate Mortgage had dropped to 3.6 percent. This is the lowest rate reported in Freddie Mac’s Primary Mortgage Market Survey® since November 10th, 2016. This rate was 4.94 percent in November 2018.

A recent article in the Wall Street Journal, highlights how this has made refinancing attractive to millions of people in the U.S., “Black Knight Inc., a mortgage-data and technology firm, estimates that 9.7 million U.S. homeowners would qualify for and benefit from a refinancing. That is a 7.8 million increase from when rates peaked in November 2018.” WSJ article by Matt Wirz (Follow him on Twitter), Christina Rexrode (Follow her on Twitter), and Rachel Louise Ensign (Follow her on Twitter).

A drop in the mortgage interest rate from 4.6 percent to 3.6 percent on a $500,000, 30-year fixed rate loan reduces monthly payments from $2,563.22 to $2,273.23, excluding taxes and insurance. Note that there are typically upfront costs associated with refinancing, such as appraisal costs, lender fees, etc. If you have a mortgage and are considering refinancing, check with a lender first to see if it makes sense for you.