Mortgage rates drop below 3% for the first time in months

Average mortgage rates for a 30-year fixed-rate mortgage fell to 2.97% for the week ending April 22, according to Freddie Mac’s primary mortgage market survey.

Mortgage interest rates fell below 3% again for the first time since Feb. 25, allowing for a potential increase in mortgage creations as more homeowners become eligible for refinancing.

Average mortgage interest rates for a 30-year fixed-rate mortgage fell to 2.97% for the week ending April 22, 2021, according to Freddie Mac’s survey of the primary mortgage market. This is a significant drop from the last weeks 3.04 percent and up from 3.33 percent last year. The last time the 30-year fixed rate fell below 3 percent was for the week ending February 25, when it hit 2.97 percent.

This is the third week in a row that interest rates have fallen, a trend conduct housing activity, which had started to slow, is picking up. Mortgage applications increased 8.6% on a seasonally adjusted basis for the week ending April 16, 2021, according to the Mortgage Bankers Association (MBA) Weekly Mortgage Application Survey. The Composite Market Index, a measure of mortgage application volume, increased 9% on an unadjusted basis from a week before.

“Lower mortgage rates are good news for homeowners who are still looking to take advantage of the very low rate environment, ”said Sam Khater, chief economist at Freddie Mac. “Freddie Mac’s research suggests that low-income homeowners and minority homeowners are less likely to enter the refinancing market. Low and falling mortgage rates offer these homeowners the opportunity to reduce their monthly payments and improve their financial situation. “

The 15-year fixed-rate mortgage was on average 2.29%, down from last week when it averaged 2.35%. A year ago at this time, the 15-year FRM was much higher at 2.86%.

However, the five-year Treasury-indexed variable-rate hybrid mortgage was on average 2.83%, up from last week when it averaged 2.8%. A year ago at this time, the 5-year MRA averaged 3.28%.

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