15-year fixed-rate mortgage remains near all-time low

Refinance activity has jumped to its highest level since February.

By Jeff Lazerson | jlazerson@mortgagegrader.com | MortgageGrader.com | August 14, 2021.

This week’s mortgage rate bump-up seems to matter little as mortgage rates have stayed so low for so long. At 2.15%, the Freddie Mac 15-year fixed is just 5 basis points off last week’s all-time low.

Refinance activity is once again picking up steam.

“Homeowners continue to respond to lower rates, with refinance activity climbing to the highest level since February 2021,” said Joel Kan, Mortgage Bankers Association vice president of economic and industry forecasting.

Locally, rates are always cheaper than in the Freddie Mac national survey. If you have a 30-year fixed rate at 3% or above or a 15-year fixed rate at 2.5% or above, you might be able to save yourself some dough. Always shop around.

Freddie Mac rate news: The 30-year fixed rate averaged 2.87%, 10 basis points higher than last week. The 15-year fixed rate averaged 2.15%, five basis points higher than last week.

The Mortgage Bankers Association reported a 2.8% increase in mortgage application volume from the previous week.

Bottom line: Assuming a borrower gets the average 30-year fixed rate on a conforming $548,250 loan, last year’s payment was $27 more than this week’s payment of $2,273.

What I see: Locally, well-qualified borrowers can get the following fixed-rate mortgages with 1 point cost: A 30-year FHA at 2.25%, a 15-year conventional at 1.99%, a 30-year conventional at 2.5%, a 15-year conventional high-balance ($548,251 to $822,375) at 2.125%, a 30-year conventional high-balance at 2.75% and a 30-year fixed jumbo (greater than $822,375) at 2.875%.

Eye-catcher loan of the week: A 30-year jumbo adjustable-rate mortgage locked in for the first 10 years with just 10% down payment or in equity at 2.375% with 1 point cost.

Jeff Lazerson is a mortgage broker. He can be reached at 949-334-2424 or jlazerson@mortgagegrader.com. His website is www.mortgagegrader.com.

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