A 15-Year Fixed Mortgage Is Now Accessible to Many More People at a Rate of 2.1%.

By Lucas Smith | August 3, 2021

The Federal Reserve announced that the benchmark interest on long term mortgages was lowered by 0.25% to reach 2,10% for 2018 and expects it will remain below 3 percent until 2020 which we could see as early as October when they make their monthly announcement next month in September 25th from 12:30pm ET!

The best news for homeowners is just in time to help them close on their home this month. With rates at an all-time low, the opportunity has never been better to make your mortgage payments more manageable and enjoy lower interest costs over the life of a loan.

A study by Freddie Mac found that 15-year fixed mortgages were down 2/10ths or 0% from last year’s record lows earlier in 2017. The average rate was only slightly higher than what we saw decades ago when inflation spiked high due to oil prices going through the roof after our Arab allies cut off supplies during Operation Desert Shield (1980).

Freddie Mac reported that the average 30-year fixed is currently at 2.8%, just 15 basis points above its Jan 7 all time low of 2.65%. This stellar performance makes it an attractive investment opportunity for those looking to make their payments more predictable in this volatile economy and housing market, or who are simply feeling lucky they can lock into a rate below 3% before rates inevitably rise again later this year as one expert predicts

Uncertainty is never good for the economy. Uncertainty tends to drive rates down, which can be bad for business and tourism (among other things). Are we going back to lockdown mode? When will this new strain get contained? What is next–will we see a wave of some other variant when this one comes to an end or are there more strains that need our attention now before they become too widespread?

The Federal Reserve announced Wednesday July 28th that it would continue buying $40 billion worth of mortgage-backed securities each month until substantial progress has been made toward maximum employment and price stability goals.

Fannie and Freddie dropped their one-half point “adverse market” fee for refinanced mortgages a few weeks ago. That saves borrowers $2,500 on a $500,000 loan.

With home prices and home appreciation exploding in recent months Black Knight reported America had over 8 trillion dollars of tap-able equity as the first quarter of this year alone! This is an increase from 6 billion just last January according to Zillow data. 42% of all rate locks were also cash-out refinances during the first three weeks June with more than half being at least 100k over current mortgage balances which means homeowners are tapping into that extra bit they can afford now or before rates go up even higher like we saw them.

14 million people in America can save $300 per month by refinancing their mortgage. Of those, 1.8 million are from California and the savings to them is even higher at more than $400 a month! This makes sense considering that local refinance activity has been pretty remarkable over the past few years – starting with 10% growth each quarter through December 2020 (except for January of this year).

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