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Mortgage interest rates dropped for the first time after nearly two months of upward momentum, giving some borrowers who haven’t yet done so the opportunity to refinance.
The average 30-year fixed rate mortgage dropped to 3.13 percent for the week ending Apr. 8, 2021, according to the latest Primary Mortgage Market Survey from Freddie Mac. This is down five basis points from 3.18 percent last week, and down from 3.33 percent last year.
“After moving up for seven consecutive weeks, mortgage rates have dropped due to the recent, modest decline of U.S. Treasury yields,” Freddie Mac Chief Economist Sam Khater said in a statement. “As the economy recovers, it should experience a strong rebound in the labor market. Combined, these positive signals will continue to bolster purchase demand. The drop in rates creates yet another opportunity for those who have not refinanced to take a look at the possibility.”
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Sam Khater | Photo credit: Freddie Mac
The average 30-year fixed-rate mortgage remained unchanged this week at 2.73 percent, signifying “an economy that continues to struggle,” Freddie Mac Chief Economist Sam Khater said in a statement.
“This rate environment is advantageous for those who are looking to refinance in order to strengthen their financial position,” Khater added. “While many have already refinanced, the evidence suggests that upper-income homeowners have taken advantage of the opportunity more so than lower-income homeowners who could stand to benefit the most by lowering their monthly mortgage payment.”
The 15-year fixed-rate mortgage averaged 2.21 percent, up slightly from last week’s 2.20 average and down significantly from the 2.97 percent average the same week in 2020.