Mortgage Rates Hit All-time Low

[james.hendrickson]

From Freddie Mac - Time To Refinance?

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Mortgage Rates Hit All-time Low

March 05, 2020 10:00 ET | Source: Freddie Mac

MCLEAN, Va., March 05, 2020 (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 the lowest rate in our survey’s history which dates back to 1971.

“The average 30-year fixed-rate mortgage hit a record 3.29 percent this week, the lowest level in its nearly 50-year history. Meanwhile, mortgage applications increased 10 percent last week from one year ago and show no signs of slowing down,” said Sam Khater, Freddie Mac’s Chief Economist. “Given these strong indicators in rates and sales, as well as recent increases in new construction, it’s clear the housing market continues to be a positive force for the broader economy.”

News Facts

* 30-year fixed-rate mortgage averaged 3.29 percent with an average 0.7 point for the week ending March 5, 2020, down from last week when it averaged 3.45 percent. A year ago at this time, the 30-year FRM averaged 4.41 percent.
* 15-year fixed-rate mortgage averaged 2.79 percent with an average 0.7 point, down from last week when it averaged 2.95 percent. A year ago at this time, the 15-year FRM averaged 3.83 percent.
* 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.18 percent with an average 0.2 point, down from last week when it averaged 3.20 percent. A year ago at this time, the 5-year ARM averaged 3.87 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. 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/NewsRo...c-fe94a5a84b9c

Source: Freddie Mac.

[riverwed070707]

I just purchased in Aug 2019 and locked in at 3.875%. My lender text me earlier this week to let me know 30 year rates dropped to 2.875% and 15 year to 2.5%. I can't pass it up. I'm going to refi to a 20 year (same rate as 30). Should save me about $82,000 over the life of the loan

[kork13]

So..... We're moving to Idaho in late April, planning to buy a house sometime in May. Is there a limit for how far in advance I can get the loan worked out? Especially not having selected a house to buy yet? I'd obviously love to take advantage of these low mortgage rates, because you never know how long it'll stick around....

[riverwed070707]

So..... We're moving to Idaho in late April, planning to buy a house sometime in May. Is there a limit for how far in advance I can get the loan worked out? Especially not having selected a house to buy yet? I'd obviously love to take advantage of these low mortgage rates, because you never know how long it'll stick around....

I believe you can lock in up to 90 days in advance BUT I think you also have to have the house picked out and a purchase agreement in place. I'm not an expert so may be worth looking further into.

[disneysteve]

30 year rates dropped to 2.875% and 15 year to 2.5%.

Those numbers are amazing. What a great time to be a buyer.

When we bought our house in 1994, the rate on our 30-year loan was 8.125%. We refinanced a few times over the years and our last loan, which we paid off back in August, was at 3.99% and we thought that was good.

[bjl584]

I already have a pretty low rate.
My bank crunched some numbers for me, but a refi doesn't make sense right now.

I read that there is an 80% probability of a 75 point cut at the next FED meeting.
If that happens, I might revisit the idea.

[Milly]

I got these messages from my sister in law who does mortgages:
"The Feds just dropped the rates again. It was good knowing all of you. Take care of my family while I am gone. I will see you all on the other side." and "In the last hour I have 5 new applications. Usually I do between 5-10 deals in an entire month!"

She also clarified that it is a delicate balancing act and that we don't actually know what the rates will be.

She submitted her own loan application to refinance and is letting it sit for that perfect moment to lock in the rate.

[Jluke]

Rates at my credit union jumped (yes jumped) UP 0.5% across the board today.

[riverwed070707]

Rates at my credit union jumped (yes jumped) UP 0.5% across the board today.

I locked in just in time. Got my 20 year locked in and then asked about refi-ing my rentals. Lender said they were getting in more applications than they could process and had to push them back up. As of this morning, the same loan I locked in at 2.75% last week is now 4.6% :O

[Fishindude77]

A friend at local bank tells me they have nearly as many RE FI's on the books right now than all the mortgages they did last year.
They are backed up and swamped but happy to do them as there is a little money to be made on each.