Home Owners Rush to Lock in Lower Rates

DAILY REAL ESTATE NEWS | FRIDAY, SEPTEMBER 09, 2016

The latest drop in fixed-rate mortgages this week is spurring a boom in refinancing activity among home owners.

"The 30-year fixed-rate mortgage fell 2 basis points to 3.44 percent this week,” says Sean Becketti, Freddie Mac’s chief economist. “As mortgage rates continue to range between 3.41 and 3.48 percent, many are taking advantage of the historically low rates by refinancing. Since the Brexit vote, the refinance share of mortgage activity has remained above 60 percent."

Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 8:

• 30-year fixed-rate mortgages: averaged 3.44 percent, with an average 0.6 point, falling from last week’s 3.46 percent average. A year ago, 30-year rates averaged 3.90 percent.
• 15-year fixed-rate mortgages: averaged 2.76 percent, with an average 0.5 point, dropping from last week’s 2.77 percent average. Last year at this time, 15-year rates averaged 3.10 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 2.81 percent, with an average 0.4 point, falling from last week’s 2.83 percent average. A year ago, 5-year ARMs averaged 2.91 percent.

Source: Freddie Mac