Mortgage refinancing saved Americans $2,800 annually

Mortgage refinancing saved Americans $2,800 annually

The coronavirus essentially shut down the U.S. economy in 2020.

If a homeowner had the opportunity, going the refinance route was the way to go.

And a year later, mortgage rates are even lower, according to data from Freddie Mac’s Primary Mortgage Market 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.”

In the past week, the average rate on a 30-year fixed-rate mortgage was at 2.95%, down from a year ago when it was 3.15%.

The average 15-year fixed rate is sitting at 2.27%. A year ago at this time, it was 2.62%.

“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,” added Khater.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders.  ReadMore




Source : foxbusiness