After seven weeks of consecutive increases in mortgage rates, Freddie Mac’s most recent survey shows a decrease, giving borrowers the chance to refinance.

Mortgage interest rates dropped for the first time after nearly two months of upward momentum, giving some borrowers who haven’t yet done so the opportunity to refinance. 

The average 30-year fixed rate mortgage dropped to 3.13 percent for the week ending Apr. 8, 2021, according to the latest Primary Mortgage Market Survey from Freddie Mac. This is down five basis points from 3.18 percent last week, and down from 3.33 percent last year. 

“After moving up for seven consecutive weeks, mortgage rates have dropped due to the recent, modest decline of U.S. Treasury yields,” Freddie Mac Chief Economist Sam Khater said in a statement. “As the economy recovers, it should experience a strong rebound in the labor market. Combined, these positive signals will continue to bolster purchase demand. The drop in rates creates yet another opportunity for those who have not refinanced to take a look at the possibility.”

The average rate for a 15-year fixed-rate mortgage also dropped from 2.45 percent last week to 2.42 percent. This is down from 2.77 percent last year. 

On the other hand, the five-year Treasury-indexed hybrid adjustable-rate mortgage increased to 2.92 percent, up from 2.84 percent. This was still down from last year, when it averaged 3.4 percent. 

Over the past seven weeks, interest rates have continued to rise consistently. This rise in rates slowed housing market activity and mortgage applications dropped as rates went higher. In fact, refinance applications dropped 5 percent from the previous week and 20 percent from last year in the Mortgage Bankers Association’s most recent report. 

However, some experts also hoped that these rising rates would cool rapidly rising home prices, which are currently growing at their fastest rate since 2006. And while rates are still expected to continue rising throughout 2021, this week’s drop could give the housing market another boost in activity.

Email Kelsey Ramirez

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription