Mortgage Rates Dip Below Three Percent

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) released its Primary Mortgage Market Survey on April 22, 2021, indicating that the 30-year fixed-rate mortgage (FRM) averaged 2.97%, a decline from 3.04% the previous week and 3.33% a year ago. The 15-year FRM averaged 2.29%, down from 2.35% last week and 2.86% last year. Notably, the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) rose slightly to 2.83%. The Chief Economist, Sam Khater, highlighted that lower mortgage rates could significantly benefit lower-income and minority homeowners, potentially improving their financial situation.

Positive

• 30-year FRM decreased to 2.97%, providing lower borrowing costs for homeowners.
• Opportunity for lower-income and minority homeowners to refinance and improve financial positions.

Negative

• None.

MCLEAN, Va., April 22, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey (PMMS), showing that the 30-year fixed-rate mortgage (FRM) averaged 2.97 percent.

“The drop in mortgage rates is good news for homeowners who are still looking to take advantage of the very low rate environment,” said Sam Khater, Freddie Mac’s Chief Economist. “Freddie Mac research suggests that lower income and minority homeowners have been less likely to engage in the refinance market. Low and declining mortgage rates provide these homeowners the opportunity to reduce their monthly payment and improve their financial position.”

News Facts

• 30-year fixed-rate mortgage averaged 2.97 percent with an average 0.7 point for the week ending April 22, 2021, down from last week when it averaged 3.04 percent. A year ago at this time, the 30-year FRM averaged 3.33 percent.
• 15-year fixed-rate mortgage averaged 2.29 percent with an average 0.6 point, down from last week when it averaged 2.35 percent. A year ago at this time, the 15-year FRM averaged 2.86 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.83 percent with an average 0.3 point, up from last week when it averaged 2.80 percent. A year ago at this time, the 5-year ARM averaged 3.28 percent.
  

The PMMS is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

MEDIA CONTACT:
Angela Waugaman
703-714-0644
Angela_Waugaman@FreddieMac.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/916c7110-1cc1-4852-affb-0be22f431aac

FAQ

What are the current mortgage rates from Freddie Mac as of April 22, 2021?

As of April 22, 2021, the 30-year fixed-rate mortgage averaged 2.97%, the 15-year fixed-rate mortgage averaged 2.29%, and the 5-year ARM averaged 2.83%.

How does the recent drop in mortgage rates affect homeowners?

The drop in mortgage rates allows homeowners, especially lower-income and minority homeowners, to refinance, potentially lowering their monthly payments.

What did Sam Khater say about the impact of declining mortgage rates?

Sam Khater stated that lower mortgage rates provide an opportunity for lower-income and minority homeowners to reduce monthly payments and enhance their financial position.

What factors does Freddie Mac's mortgage survey focus on?

Freddie Mac's mortgage survey focuses on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20% down and have excellent credit.