Mortgage Rates Retreat, Opens Up Refinance Opportunities For Homebuyers

Freddie Mac’s Primary Mortgage Market Survey reported that the 30-year fixed-rate mortgage averaged 2.95% for the week ending March 27, 2021. A year ago, the 30-year averaged 3.15%, according to the survey.

“Mortgage rates are down below three percent, continuing to offer many homeowners the potential to refinance and increase their monthly cash flow,” said Sam Khater, Freddie Mac’s chief economist. “In fact, homeowners who refinanced their 30-year fixed-rate mortgage in 2020 saved more than $2,800 dollars annually. Substantial opportunity continues to exist today, as nearly $2 trillion in conforming mortgages have the ability to refinance and reduce their interest rate by at least half a percentage point.”

Meanwhile, the 15-year fixed-rate mortgage averaged 2.27%, down slightly from last week's average of 2.29%. A year ago the 15-year averaged 2.62%. Additionally, the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.59%, unchanged from the previous week.