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Last updated on December 26th, 2022 at 09:34 pm
Freddie Mac’s primary market mortgage survey shows the 15-year fixed hit rock bottom at 2.1% with a 0.7-point cost this week.
Last year triggered refinance ball to spin, and the 15-year was 41 basis points higher at 2.51%.
In California, if you are willing to pay some points the 15-year fixed is right now available at a 1.75% interest rate.
The mortgage sizes in California are larger, so the pricing will be better than Freddie’s national polling.
Freddie Mac reports the average 30-year fixed is currently at 2.8% 15 basis points above where it was at the beginning of 2021.
According to Freddie Mac’s historical data in the past 50 years very few times the mortgage rates have climbed about three-quarters of a percentage point in five months.
With a new COVID-19 virus variant being seen in America. New cases are climbing. There is uncertainty that will drive rates down.
On Wednesday, Federal Reserve Chair Jerome Powell announced that the Fed will continue to buy at least $40 billion of mortgage-backed securities every month till the time the economy stabilizes and there is substantial progress made toward maximum employment and price stability goals.
With Fannie and Freddie dropping their adverse market fees, it saved borrowers $2,500 if they had a loan of $500,000.
In the first quarter of the year, Black Knight reports $8.1 trillion of tappable home equity.
Its Optimal Blue refinance rate-lock data for the maximum time in the month of June showed that 42% of all rate locks were for cash-out refinances.
As of July 21, the data of Black Knight shows close to 14 million borrowers could save almost $300 every month by refinancing.
The approximate savings to California refinance borrowers was more than $400 every month.
The biggest break is if you can go from a 30-year fixed to a 15-year fixed where you can reduce your interest rate by around 0.5% by taking on the shorter-term mortgage.
Compared to the previous week the Mortgage Bankers Association reported a 5.7% increase in mortgage application volume.
Reference Source: OC Register
