Freddie Mac said US mortgage rates fell below 3% this week. The 30-year fixed-rate mortgage rate averaged 2.95% for the week ending May 27, compared to 3% the previous week. More than two months ago, mortgage rates hit 2.65%, the lowest since the persecution began in 1971. A year ago, mortgage rates were 3.15%.
Low mortgage rates are helping to boost US home sales and the refinancing market.
“Mortgage rates have fallen below 3 percent and continue to provide many homeowners with opportunities 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 annually. Significant opportunities remain today as nearly $ 2 trillion in compliant mortgages have the option to refinance and cut their interest rate by at least one-half percentage point. “
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