According to the most recent Freddie Mac Primary Mortgage Market Survey, rates have hit new lows. The 30 Year Fixed Rate Mortgage is now averaging 3.15% with 0.80 points. The 15 Year Fixed Rate Mortgage is averaging 2.62%with 0.70 points.
The primary reason for the drop in rates is due to the Federal Reserve providing the liquidity needed to calm the financial markets in response to the Coronavirus pandemic. The Fed stepped in and became the main buyer of an almost unlimited amount of mortgage-backed securities, which has helped drive down mortgage rates and keep them at these low levels.
This rapid decline in mortgage rates is sparking a big increase in refinancing requests by homeowners in order to lower their monthly mortgage payments. It will also provide a boost for the spring homebuying season as re-openings progress, by making prospective mortgage payments much more affordable.
During future commentaries, I will discuss other factors for the drop in rates. Also in the upcoming weeks, I will be sharing some future projections for the mortgage and real estate market, while also discussing some of the technological improvements the mortgage industry has seen.
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Stephen Casil, Vice President
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